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Banks See Consumer Loan Costs Drop Despite Rising Rates

  • JPMorgan, Wells Fargo, Citigroup cut expenses for bad loans
  • Lending since crisis ‘has been pretty damn good,’ Dimon says
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Banks Benefitting Favorably from Interest Rates, RBC's Cassidy Says

When interest rates tick higher, consumers carrying too much debt start to default. It’s the natural assumption, but Americans keep meeting their obligations.

Three of the largest U.S. banks -- JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. -- announced Friday that their costs for bad loans are falling. The same strong economy pushing the Federal Reserve to raise rates is helping households keep current on their growing mound of debt.