Posted on 30 October 2010
Tags: credit card, credit card late payment, credit card rate, credit card sale, credit card spending, Credit Score, US Treasury Department
Being the fourth biggest U.S. payments network, Discover Financial Services stated that their second quarter profit arose by 14% which was mainly due to the rise in credit card spending and payments being made on time by customers.
Furthermore, besides the profit, the net income of the company arose by $258.1 million. This figure compared to the figure of the same quarter of last year was tremendously higher. This suggests that if payments are made on time then the payment network could earn higher profits. This could further receive a major boosts if transactions are made through credit cards rather paying cash. Comparing the figures with that of the last quarter, it was seen that due to the excessive spending on credit cards, the company was able to generate higher profit thus promoting more use of electronic money. Read the full story
Posted on 18 August 2009
Tags: Banks, borrowers, capital expenditures, central bank, credit, creditworthiness, dollars, domestic banks, emergency lending program, financial crisis, financial markets, government, government studies, Great Depression, households, inventories, liquidity, Loans, Mortgage, Prime mortgages, public sector, U.S. Federal Reserve, US demand, US Treasury Department
According to the central bank and government studies, the US demand for loans fell in the second quarter for every major category bar prime residential mortgages due to tightened credit standards set by the banks making the borrowers cautious.
The US Federal Reserve observed in its quarterly survey of senior loan officers, conducted between July 14 and July 28, that the percentage of banks that tightened loan standards for business and households was slightly lower than in the first quarter.
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Posted on 03 July 2009
Tags: Bank of America Corp., Banks, Citigroup Inc., Debt Plan, Deposit Insurance Corp., distressed mortgage securities, economy, government, investors, Mortgage Backed Securities, mortgage securities, PPIP, PPIP funds, public and private money, Public-Private Investment Program, treasury secretary, US Treasury Department
The US Treasury Department may initiate its program in order to encourage purchases of mortgage-backed securities from banks with about $20 billion in public and private money. This has been down as much as $100 billion from what it was announced in March, it was said by two people who were familiar with the matter.
The treasury has planned to provide $1.1 billion in capital to eight to 10 money managers which it will pick for the Public-Private Investment Program, according to the people, who have asked that it should not be identified before the details are announced. $1.1 billion each will be raised by the firms for funds to buy distressed mortgage securities. This is less than what they had expected from the government to support. About $10 billion in government-backed loans is also included in the plan.
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