Don't Worry About Credit Quality Concerns at JPMorgan and Citigroup
Recent earnings reports from JPMorgan Chase, Citigroup and Bank of America raised concerns about consumer credit quality.
Recent earnings reports from JPMorgan Chase (JPM) - Get Report , Citigroup (C) - Get Report and Bank of America (BAC) - Get Report raised concerns about consumer credit quality.
JPMorgan Chase and Citigroup allocated more money to deal with the possibility of sour consumer credit card debt. Bank of America net charge-offs rose 1% year-over-year to $900 million.
Sam Stovall, chief investment strategist at CFRA Research, said these movements are normal given how late we are in the bull market. Plus, banks think they can take on a little extra risk in extending credit to consumers given how low unemployment is.
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