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- Goldman, BofA, Citi lose $4.14B in Q2 2024
Goldman, BofA, Citi lose $4.14B in Q2 2024
Old Lending Ways are Failing
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/42e4f695-6dcb-4e98-a857-87576314fe8c/Newsletter_Images__48_.png?t=1721694228)
Citigroup alone saw a $780 million increase in delinquent debts compared to the same quarter last year, with CEO Jane Fraser noting signs of slowing consumer spending, particularly among average Americans.
BofA's net charge-offs rose by 66% to $1.5 billion, while its provision for credit losses increased by $400 million. Goldman Sachs reported $359 million in net charge-offs for the quarter.
Other major US banks, such as JPMorgan Chase and Wells Fargo, also experienced significant losses due to uncollected debts, with $2.2 billion and $1.3 billion in net charge-offs, respectively.
The Federal Reserve Bank of New York recently highlighted the growing concern over US household debt, which reached $17.69 trillion in Q1 2024, a $640 billion year-over-year increase.
Our Opinion:
This news highlights challenges in traditional lending and the need for responsible lending practices and financial education for borrowers. The current climate creates opportunities for innovative financing options, with alternative lenders aiming to expand their market share. Alternative lenders must aim for a balance in seizing potential opportunities while remaining cautious and prepared for the inherent market risks.
1-Minute Video: A Lender Turned to Solution Provider | Rapid Finance Story
Headlines You Don’t Want to Miss
Dwight Capital has unveiled a new platform for C-PACE loans, designed to provide low-cost, long-term financing for sustainable property improvements. This initiative offers a vital financing alternative for real estate developers, focusing on energy efficiency, renewable energy, and water conservation, with significant environmental and economic benefits.
ChoiceOne Bank has launched a new software platform named "Small Business+" that leverages AI to expedite the business lending process, streamlining decision-making significantly. Additionally, through its new subsidiary, Fintech Solutions LLC, the platform will be licensed to other banks and credit unions, enhancing banking access and economic growth for small businesses.
Slope, a specialized risk management platform for new asset classes, has recently secured a financing deal from global banking leader JPMorgan Chase. This partnership reflects the growing trend of collaborations between traditional financial institutions and fintech firms to leverage digital advancements in finance.
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