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Largest bank in the US holds back $10 billion anticipating Americans won’t be able to pay their mortgage

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Last week it was revealed that nearly one-third of Americans couldn’t pay their mortgages or their rent. It’s the third month in a row with over 30 percent of American renters and homeowners showing that they’re in trouble, despite the stimulus check from Washington.

Tuesday, the Wall Street Journal wrote that the largest bank in the United States, JP Morgan Chase, put aside $10 billion, anticipating that the numbers of home loan defaults are going to get far worse.

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“The pandemic also took a toll on two other big U.S. lenders,” said the Journal. “Wells Fargo & Co. posted its first quarterly loss in more than a decade and socked away $9.57 billion to prepare for a wave of loan defaults. Citigroup Inc.’s second-quarter profit fell 73%, weighed down by the $7.9 billion the bank set aside for an expected increase in soured loans.”

JP Morgan Chase CEO Jamie Dimon explained that the 2020 economic crisis “is not a normal recession.”

“The recessionary part of this you’re going to see down the road,” he said.

Whatever stimulus, unemployment and help the Congress can deliver are what is keeping things stable for now.

“JPMorgan’s outlook for the economy has darkened since the bank reported first-quarter earnings, and its increased loan-loss provisions reflect that view,” said the Journal. “The bank put aside extra to prepare for unemployment to remain above 10 percent through the first half of next year, said Chief Financial Officer Jennifer Piepszak.”

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Their models are predicting a wave of mortgage defaults coming up in the next year, particularly if the economy continues to take a hit as the virus resurges and has a second or third wave.

“The biggest portion of the quarter’s provision—$5.83 billion—came from the consumer bank, while $2 billion came from the corporate and investment bank and another $2.43 billion came from the commercial bank,” said the Journal. “In the consumer and small-business banking operations, revenue fell 9 percent and the provisions it set aside for loan losses sent it to a $176 million loss. Spending volume on the bank’s credit cards fell 23 percent.”

It isn’t a promising prediction of the future of the American economy.

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‘That’s not true’: CNN host disputes ex-Trump adviser who says ‘typical’ family won’t work because of $600 checks

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Former White House economic adviser Kevin Hassett claimed on Tuesday that a "typical median family" is being paid $90,000 to stay home during the pandemic if they are receiving the $600 weekly federal unemployment benefits.

In an interview on CNN, host Poppy Harlow challenged the former Trump adviser when he downplayed the urgency of extending the unemployment benefits.

"You and I don't rely on $600 a week to pay our rent or feed our family," Harlow explained. "That's not our situation. But for millions of Americans, it is. And they stopped getting those checks on Friday and that's why I don't think it's too far to say that it's a failure [of government]."

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Cops handcuff 4 black children at gunpoint after pulling over wrong vehicle

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Aurora, Colorado police are being criticized nationwide after officers stopped an SUV and forced the occupants, including four Black children, out of the vehicle, handcuffed at least two of them with their hands behind their backs, and forced them to lie face down on the hot parking lot pavement.

In the video below the children and the adult driving the car can be heard crying and screaming. The youngest girl, just six years old, is wearing a tiara. Some of the officers are not wearing masks.

ABC affiliate The Denver Channel reports the cops made an error, wrongly "matching" the license plate number of the SUV to an out-of-state license plate of a motorcycle.

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Bank VP gets booted from family business after responding to Obama’s eulogy with racist Facebook screed

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According to the Valdosta Daily Times, an executive at a small family bank has been removed from his job after a racist, anti-Semitic Facebook post in response to President Barack Obama's eulogy of civil rights leader John Lewis.

"David Hollis has been asked by Citizens Community Bank to resign both his position and his role on the bank's board of directors, according to a CCB statement to the Valdosta Daily Times," reported Chris Herbert. "'The employee was asked to submit his resignation and is no longer employed by the bank, nor will he be serving on the board of directors,' the statement read."

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