JPMorgan Chase Misses on Earnings as Loan Accounting Feature Comes Into Play

John Petrides, portfolio manager at Tocqueville Asset Management, breaks down the factors that led to narrowing margins for the banking giant JP Morgan Chase and the concerns for an overall economic slowdown. "The miss was really driven by an accounting feature called CECIL, current expected credit losses, which is something that was rolled out a couple of years ago and is now in full play," he said. "Basically what that means is every loan a bank makes, now they have to assign some probability of a loss to the loan at the moment that they issued a loan."
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Biden Proposes Canceling Student Loan Interest to Tackle Debt Crisis
The Biden administration has unveiled a plan, Plan B, to address the student loan debt crisis. It offers to cancel up to $20,000 in interest for borrowers enrolled in income-driven repayment plans. This proposal aims to reset balances for those facing growing debt due to unpaid interest, benefiting low—and middle-income borrowers. An estimated 25 million borrowers are eligible for some form of interest forgiveness.
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