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’Credit cards create inequality, Fed paper says
The question of ‘plastic or paper?’ has just taken on a whole new moral dimension.
In a new study from Federal Reserve Bank of Boston, authors Scott Schuh, Oz Shy, and Joanna Stavins ponder the question of “Who Gains and Who Loses from Credit Card Payments?”
Walking away, datapoints du jour
Which would you choose to walk away from? Plastic or property? Cards or cribs?
From a Tuesday statement by the company behind the benchmark US consumer credit score, Fico:
MINNEAPOLIS, Feb 23, 2010 (BUSINESS WIRE) — FICO .
Credit card curveballs
You’ve heard of mortgage loan modifications, now witness the effects of credit card loan modifications on banks.
On Monday, a number of US banks released credit card master trust data for October. Credit
FDIC saves securitisation
Well, sort of.
Remember FAS 167? The new accounting standard will eliminate qualified special-purpose entities (QSPEs) and lead to banks putting billions worth of securitised assets — mostly credit card trusts — back onto their balance sheets from 2010.
US credit card losses hit record, Fitch says
Losses on US credit card debt reached a record of high of 10.4 per cent of outstanding loans in June, rating agency Fitch said in a statement released on Wednesday.
The report follows a similar assessment from Moody’s,
Meredith Cassandra Whitney
On the issue of credit card debt and the deteriorating health of the US consumer, the FT reports on Thursday:
Record credit card losses are pushing big US banks to come to the rescue of off-balance sheet vehicles they use to transform hundreds of billions of dollars in consumer loans into securities sold to investors. The support provided by Citigroup,
Sorry sir, your credit-card has been rejected due to insufficent lender’s funds
Meredith Whitney’s call on credit-card exposure being the next big impairment factor on financial balance sheets appears to be gaining traction by the day. Certainly, what started as a trickle of disappointing news flow risks becoming a steady stream both in the UK and in the US.
Unsecured, insecurity in the UK
The Bank of England launched a brand new report on Tuesday entitled ‘Trends in Lending’.
The reasoning behind the publication was described as follows:
The publication is launched at a time when the world economy has entered a deep and synchronised downturn,
US credit card reforms ‘to cost banks billions’
The US banking industry could lose billions of dollars in annual interest payments, according to a study that warns of credit card lenders raising prices after a regulatory overhaul, the FT said. The Federal Reserve board will meet this week to finalise changes to rules governing the $970bn credit card business.
(Stolen) financial data doesn’t cost much these days
Psst. Are you in the market for a social security number or three, by any chance? How about access to a compromised bank account? It will cost you – about 6 to 11 cents on the dollar.
At least, that is what the creators of this recently-discovered price list were demanding,