JPMorganChase,WellsFargo,BankofAmericaandCitiareunloadingbillionsofdollarsinbaddebtthatthey’vegivenuponrecovering.
Newearningsdatashowsthefourlargestbanksinthecountrycollectivelyrecorded$6.9billioninnetcharge-offsinQ3ofthisyear,primarilydrivenbycreditcarddelinquenciesandsouredconsumerloans.
JPMorgansaysitsnetcharge-offshit$2.087billioninQ3,upnearly40%from$1.497billionregisteredinQ3of2023.
WellsFargosaysitsnetcharge-offssurgedto$1.111billioninQ3,anincreaseofnearly54%from$722millionrecordedayearago.
Citisaysitsnetcreditonlossesreached$2.172billion,anover32%jumpfromthe$1.637billionwitnessedinthesameperiodlastyear.
AndBofAsaysnetcharge-offshit$1.534billioninthesamequarter,up64%from$931millionayearago.
ThenewscomesafterUScreditcardrateshitafreshall-timehighinAugust.
AdamKobeissi,founderandeditor-in-chiefofTheKobeissiLetter,saysrateshaveincreasedbysevenpercentagepointsinjusttwoyears,hitting23.4%acoupleofmonthsago.
Inaddition,totaloutstandingUScreditcarddebthassoaredto$1.36trillion–thehighestlevelinhistory.
“USconsumersnowhavearecord$1.36trillionincreditcarddebtandotherrevolvingcreditmeaningtheypayamassive$318billionannualinterest.
Toputthisintoperspective,Americanspaidjusthalfofthatin2019at~$160billion.
Meanwhile,creditcardseriousdelinquencyratesareat7%,thehighestlevelsince2011.Thecreditcarddebtbubbleispopping.”
GeneratedImage:Midjourney
dailyhodl.com