Two of the largest banks in the US, JPMorgan Chase and Wells Fargo, are facing massive losses totaling $3.5 billion in delinquent debts that customers are unable to repay. JPMorgan reported a net charge-off of $2.2 billion in the second quarter, representing a significant increase from previous quarters. Similarly, Wells Fargo saw its net charge-offs jump by 70% to $1.3 billion. The banks attribute these losses to customers struggling with rising credit card balances and diminishing savings, exacerbated by inflation. In addition to these challenges, JPMorgan also declared $500 million in losses from failing mortgage investments. Despite these setbacks, JPMorgan reported a quarterly profit of $13.1 billion, while Wells Fargo earned $4.9 billion. However, Wells Fargo's shares fell 6% due to lower-than-expected net interest income. US banks have been warning about increasing credit card balances and issues in the real estate industry, signaling potential future challenges.