Wachovia, Capital One Say Credit Conditions Worsen

Source: Reuters

NEW YORK (Reuters) - The U.S. credit crisis deepened on Friday as Wachovia Corp reported a $1.1 billion loss on subprime mortgage-related debt in October, while Capital One Financial Corp said more customers are missing payments.

Shares of both lenders fell, as did broader market indexes on expectations that write-downs and bad loans will mount.

"This is now worse than Long-Term Capital (Management)," said Jack Malvey, chief global fixed-income strategist at Lehman Brothers Inc., referring to the hedge fund whose 1998 collapse threatened to unhinge global financial markets. "This is a painful lesson in financial engineering."

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CREDIT CARD LOSSES

Capital One, the largest independent MasterCard and Visa credit card issuer, said on Friday its rate of net charge-offs on a managed basis rose to 3.28 percent in October from 2.86 percent in the third quarter.

The charge-off rate in U.S. cards rose to 5.11 percent from 4.13 percent in the same periods, while card loans at least 30 days past due rose to 4.75 percent from 4.46 percent.

"While management previously indicated that the U.S. card loss rate would trend north of 5 percent in the fourth quarter, we were surprised to see how fast this jumped," Credit Suisse analyst Moshe Orenbuch wrote.



Read more: http://www.reuters.com/article/domesticNews/idUSN0932290920071109

...out of their customers, payments might've been a bit easier for their customers to make?

the credit limit, another $35 fee. Now the balance is $365. What a racket, eh?

Alas... too many on the take.

Every offer comes with a postage paid envelope. Don't you think Capital One (or for that matter every cc company stuffing your mail box) could use a pizza coupon or two?

They do, after all, have to pay the postage if you drop it in the mail box :o)

to say about them, but I wish all the tortures of hell on Sears (CitiCorp).

We are seeing people lose thier homes at an unbelieveable rate? Are other countries having the same problems? I think not. So much for the greatest country in the world.

:rofl:

Being sued for debts my clients can not pay. Many are so poor, I tell them it is better for them NOT to declare bankruptcy for their assets are BELOW the State's exemptions (In Pennsylvania that is $300 in assets, Pennsylvania does NOT permit attachment of wages for debts). Other I have to file Bankruptcy to preserve what assets they have (Please Note my clients are all below 125% of the Poverty level and as such below Median Income so the Bankruptcy reforms do not affect them, except that they can now have the filing fee waived).

now that that's over with, I'm ready to finance a car.

my credit scores have jumped from 600 to 675 since June.

Now stay OUT of debt. ;)

By Jim Wasserman - wasserman@sacbee.com
Published 2:05 pm PST Friday, November 9, 2007



more:
http://www.sacbee.com/749/story/481729.html
(reg. req., alas)

...and more of same to come...

I bet Mr. Kane is going to be looking for another line of work soon.

drip drip drip ...

:dem: :kick: