JPMorgan Profit Rises 76% on Cut in Bad-Loan Reserve
JPMorgan Chase & Co., the second- biggest U.S. bank by assets, said profit rose 76 percent, buoyed by a .3 billion reduction in provisions for soured mortgages and credit-card loans from last year.
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Question by Lovecakes: Why are financial institutions/companies struggling when they made extra profit off bad credit loans?
Why do they need to be bailed out? A little more than 65% of the American population have a credit score of less than 630 who were approved for different types of loans from financial institutions with a higher interest rate. With all the extra money they’ve received from these people/loans, why are so many companies struggling since they received all the extra money/profit? Did all these people default?