Big banks still losing billions with consumers

The recent consensus opinion on Wall Street has been that the problems the Big banks had experienced over the past two years were over. That theory was crushed on Friday when JPMorgan Chase disclosed it was required to add $1.5 billion to its consumer loan loss reserves.

It turns out that when Chase took over Washington Mutual last year, it inherited a pool of mortgages that are now going bad at an alarming rate. This reeks of more trouble ahead for the banking industry.

Yes the Wall St boys are all giddy with the ”green shoots” sightings, but be very careful not to get too caught up in their unbridled enthusiasm. Protect your wealth!