Wells Fargo Joins JPMorgan in $6.5 Billion Equity Hit on Rates

Wells Fargo & Co. and JPMorgan Chase & Co., the most-profitable U.S. banks, lost $6.5 billion in combined equity as rising interest rates and falling bond prices threaten capital levels across the industry.

JPMorgan suffered a $3.1 billion decline in accumulated other comprehensive income, a measure of shareholder equity, in the second quarter while Wells Fargo reported a $3.35 billion hit, according to results released yesterday. The equity figure includes unrealized security gains, which fell to $5.1 billion at Wells Fargo from $11.2 billion at the end of March.