🚀 Are You Chasing New Coins?
Catch the newest crypto opportunities. Be the first to buy, be the first to win! Click now!

Citigroup Leads with $2.28 Billion in Losses Amid Rising Consumer Debt in Q2 2024

  • Major US banks are currently facing substantial financial losses due to an increasing amount of unpaid debts.
  • Citigroup, Bank of America, and Goldman Sachs have collectively reported losses amounting to $4.139 billion.
  • Citigroup’s net credit losses alone have risen by approximately $780 million in the second quarter of this year compared to Q2 2023.

Major US banks face over $4 billion in losses due to uncollectible debts.

Surge in Net Credit Losses Among Leading Banks

Citigroup has reported a dramatic increase in net credit losses, reaching $2.28 billion in the second quarter of 2024. This figure marks a significant rise from the $1.504 billion recorded during the same period in 2023. The increase is indicative of growing financial stress among consumers, with Citigroup CEO Jane Fraser noting a reduction in average consumer spending. “The consumer is slowing. A lot of the spending and growth areas we are seeing, in the underlying numbers, is being driven by the affluent customers,” Fraser stated in a Bloomberg interview.

Bank of America and Goldman Sachs Follow Suit

Bank of America has also reported a sharp rise in net charge-offs, jumping from $900 million in Q2 2023 to $1.5 billion in Q2 2024—an increase of 66%. Additionally, the bank’s provision for credit losses surged by $400 million year-over-year, indicating a worsening credit environment. Goldman Sachs reported net charge-offs totaling $359 million last quarter. These figures reflect a broader trend among major financial institutions, struggling with a rising tide of uncollectible debts.

Widespread Impact Across the Financial Sector

The issue of mounting debts is not confined to just a few banks. JPMorgan Chase disclosed $2.2 billion in losses due to uncollectible debts in the last quarter, while Wells Fargo recorded $1.3 billion in net charge-offs for the same period. This trend reflects a concerning rise in financial distress among consumers and businesses, prompted by various economic pressures.

Federal Reserve’s Warning on Household Debt

In May, the Federal Reserve Bank of New York highlighted the significant increase in U.S. household debt, which reached $17.69 trillion in the first quarter of this year—a year-over-year rise of $640 billion. The FDNY’s Center for Microeconomic Data raised alarms about the sustainability of this trend and the potential long-term implications for the economy.

Conclusion

The recent financial reports from major U.S. banks underscore the growing problem of uncollectible debts, which is impacting the financial stability of these institutions. The rising figures in net credit losses and charge-offs indicate mounting financial stress among both consumers and businesses. As household debt continues to climb, the financial sector must navigate an increasingly precarious landscape, ensuring stricter credit assessments and proactive risk management strategies to mitigate future losses.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Galaxy Digital Moves 3,782 BTC Worth $447M to Trading Platforms in Major Transfer

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bakkt Transforms into Pure Crypto Company After Selling Loyalty Business, Plans Share Issuance

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Whale Alert: New Wallet Receives 12,749 ETH from FalconX, Now Holds $302M in Ethereum

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

How Ethereum Treasury Staking is Revolutionizing Corporate Capital Strategies with Passive Income Opportunities

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ancient Whale Moves 135 BTC After 14.5 Years Dormant, Triggering $15.93M Market Activity

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

ETH Futures Data Suggests Potential for Cautious Rally Toward $5,000 Amid Institutional Inflows

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bittensor (TAO) Shows Bullish Structure but Faces Resistance Near $500, Consolidation Expected

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ray Dalio Suggests Considering 15% Bitcoin Allocation Amid US Debt Concerns and Currency Risks

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

SEC May Further Delay Decision on Trump-Linked Bitcoin ETF Amid Regulatory Review

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

TRON Foundation Addresses Rumors, Confirms TRX Price Stability Near $0.32

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ethereum Shows Continued Strength Amid Bitcoin Resistance and XRP Technical Risks

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin May Face Further Volatility Following Whale Activity and Price Dip Below $118,000

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

NEAR Shows Potential Bullish Momentum After Double Bottom, $8 Target Possible

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img