The two largest banks in the US say they expect to lose a collective $4.5 billion from customers who are essentially unable to pay their bills.
  • MNByChoice@midwest.social
    0·
    7 months ago

    Interesting article.

    Despite the losses, both JPMorgan Chase and Bank of America say their balance sheets are sound.

    JPMorgan Chase earned $49.6 billion in profit last year, while Bank of America earned $24.9 billion.

    • Yardy Sardley@lemmy.ca
      0·
      7 months ago

      Banks having “sound” balance sheets while losing actual boatloads of money to sub-prime lending makes me a little nervous, having lived through the year 2008 and all.

      • phdepressed@sh.itjust.works
        0·
        7 months ago

        BoA and Chase are both above the limit that they have to have a decent chunk of actual non-invested cash. Trump increased the limit of when that is necessary and i haven’t heard of Biden dropping it back down. Lack of cash reserves is an important part of why a number of small-mid size banks were capable of failing.