The two largest US banks, JPMorgan Chase and Bank of America, are facing significant losses due to customers’ inability to pay their bills, with a collective $4.5 billion expected to be lost. This is primarily attributed to a surge in unrecoverable debt, particularly in credit card debt, as borrowers with below-prime credit scores struggle with higher interest rates and inflation. Despite these challenges, both banks assert the soundness of their balance sheets, with JPMorgan Chase earning $49.6 billion in profit last year and Bank of America earning $24.9 billion.
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