JPMorgan Chase is dumping billions of bad debts that it has given up trying to recover.
According to new earnings figures, the country’s four biggest banks collectively incurred $6.9 billion of net charge-offs during the third quarter this year. This was primarily due to credit card defaults and soured loans.
JPMorgan’s net charge-offs in the third quarter of 2023 were $2.087 Billion, up by nearly 40% compared to $1.497 Billion in the same period in 2023.
Wells Fargo reports that its Q3 net charge-offs jumped to $1.111 Billion, an increase of 54% over the $722 M$ recorded one year earlier.
Citi reports that its net losses for the first quarter of this year reached $ 2,172 billion. This is a 32% increase from the $ 1,637 billion recorded in the same time period last.
BofA reports that net chargeoffs reached $1.534 billion during the same quarter. This is up by 64% compared to $931 million in the previous year.
This news follows the recent record-breaking credit card rate hike in August.
Adam Kobeissi is the founder and editor in chief of The Kobeissi Letter. He says that rates increased seven percentage points within two years. They reached 23.4% just a few months ago.
The total amount of outstanding US credit cards has also risen to the highest ever level, at $1.36 trillion.
The US consumer now has a record of $1.36 trillion credit card debt, and they also have other credit cards that are revolving. This means the US consumers pay an enormous $318 billion in interest each year.
In 2019, Americans spent only half that amount, or $160 Billion.
The rate of serious credit card delinquency is at its highest since 2011, at 7 percent. Credit card debt is bursting .”
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The post JPMorgan Chase Loses $6,900,000,000 from Sour Loans as Analyst Warns Notorious Debt Bubble is Popping by Wells Fargo, Citi, Bank of America and Bank of America may change as new information becomes available.
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