The Raise interest rate decision was attributed by Citigroup to the difficult market environment when borrowing costs and credit risks continue to rising. The Policy change would only partly offset a $1.4 billion third-quarter loss for its credit card unit. But the company did not specify the details.
The Credit card borrowing will be raised by 2-3%. It will cause some borrowers to pay more than 20% interest rate annually. This Decision only considers its economic reasons but doesn’t care customer’s reasons.
See also my previous posts:
- There are $915 billion in U.S. credit card debt may blow up has major financial institutions like Citigroup, American Express, and Bank of America. Click here.
- Fitch Ratings Agency said on November 3, that U.S. credit card portfolio losses will increase in the year ahead, with measures of credit continuing to deteriorate into 2009, and with some issuers surpassing historical loss peaks before 2009 is over. Click here.
- There are no investors eager to buy credit card security cause credit card bond sales at zero. No demand for credit card asset backed bonds. Click here.
- American Express (AMEX), the credit-card giant, gain access to a chunk of the $700 billion in federal funds being pumped into financial firms. Click here.
Sources :Please Note!
This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.
You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.
No comments:
Post a Comment