Posted on 08 July 2009
Tags: American Express Co., asset-backed securities, Bank card defaults, Bank of America Corp's lending portfolio, Banks, Capital One Financial Corp, charge-off rate, Chargeoffs, Citigroup Inc., Credit Card Chargeoffs, credit card companies, debts, delinquencies, Discover Financial Services, monthly payments, private-label cards, rise in Bank card defaults, rise in defaults, rise in delinquencies, Standard & Poor's, U.S. credit cards, U.S. credit quality index, Unemployment, US Credit Card Chargeoffs, Visa-branded credit card
In May Bank card defaults rise up to 10 % – S&P
In May there has been a fall of 5.7 % in delinquencies – S&P
S&P has seen that the defaults rise up to 10.5-12.5 %
On Tuesday it has been said by Standard & Poor’s that as unemployment grew to a 26-year high, there had been a record rise in the charge-off rate of U.S. credit cards issued by banks.
Rise In U.S. Credit Quality Index
There has been a rise of 10 percent in the U.S. credit quality index which was 6.4 % in April. The U.S. credit quality index has tracked $414.8 billion of bank card receivables backing S&P rated asset-backed securities. As compared to the last year the index has quickly raised up to 66.8 %.
Among private-label cards, there has been a rise in the defaults up to 12.2 % in May which was 11.7 % in April, while there has been a fall in delinquencies from 7.1 % to 6.9 %.
The decline in delinquencies has been attributed by the analysts to a seasonal trend, as tax refunds is being used by the consumers to pay back debts.
Credit Card losses Follow Unemployment
Credit card losses usually follow unemployment, which rose to 9.4% in May and expected to reach 10% by the end of 2009 or in early 2010.
Big Credit Card Companies Faced Credit Losses
Big credit loses have been shown by two companies the American Express Co, the largest U.S. credit card company by sales volume, and also Citigroup Inc which is considered to be the largest issuer of MasterCard branded credit cards.
However the default rates shown by, top Visa-branded credit card issuer JPMorgan Chase and Co, Discover Financial Services and Capital One Financial Corp ,were quite better than expected.
Posted on 30 January 2009
Tags: 42nd President, Abbi Cohen, AIG, Alan Greenspan, America, american, American International Group, analyst, Andrew Lada, author, bank, Banks, Bark up the wrong tree, Ben Bernanke, Bill Clinton, Bill Gates, Britain, California, Case Study, crisis, derivatives, Doom, Europe, Federal Reserve System, Finance, financial, financial crisis, financial markets, founder, Franklin, Geir Haarde, George Soros, George W Bush, Goldman Sachs, Goldman Sachs Bank USA, Gordon Brown, greed of Businessmen, Guardian, Hank Greenberg, head, Henry Paulson, Iceland, idiots gave opportunity, idiots who gave me the opportunity to become rich, influential financier, investment, investment banks, John Paulson, Kathleen Corbet, Lehman Brothers, Lewis Raneri, market, Meredith Whitney, Minister of Finance, New York University, North America, Nuriel Rubin, people, political short-sightedness, President, Prime Minister, Professor, Richard Fuld, S&P 500, Sleeping over the Crisis, Standard & Poor's, Steve Jobs, strategist, the Guardian, U.S. Federal Reserve, U.S. Treasury, United Kingdom, United Socialist States of America, united states, United States Congress, United States of America, Wall Street, Warren Buffett, world
Guardian in a recent report revealed the perpetrators of the global financial crisis. It revealed their names and photos too. The British Guardian newspaper on Monday published a list of people whose work has proved fatal for the world economy. Lies have been told by both policy makers and business sharks.
The publication also listed visionaries who, warned us long before the actual crisis hit our shores. Unfortunately for the all us, these people were not involved in the process of decision-making.
In its famous “black list” Guardian has 25 spots. Almost half of them are filled with the people that have something to do with economic crisis of today. here are some of political and financial heavy weights.
Bark up the wrong tree “guru”
Alan Greenspan, head of the U.S. Federal Reserve( 1987 to 2006), is on the list at number one. The most influential financier has received from fans the world title of “guru”, “oracle” and “maestro”. In the delight of observers led his calmness with which Greenspan has held America through crises of 1987 and 1991, as well as the collapse of IT-industry in 2000 and panic in the markets that followed the September 11, 2001. It was Greenspan in early 2000 pursued a policy of low rates of the Fed, which led to easy money and irresponsible distribution of loans by banks. Moreover, the head of the Fed encouraged mortgage borrowers to take loans with floating rates. When rates inevitably increased after the tightening of fiscal policy in the middle of this decade, the people proved to have nothing to pay sharply increased the cost of credit.
Read the full story
