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Capital One January Charge Offs Hit Record
Nothing good to see in the credit card arena. Capital One's January annualized net charge offs hit a record 10.41%, while 30-Day delinquencies stayed at the highest of the past 3 months. Then again with entire countries defaulting, it really is a shocker than neither of these numbers is at 100% yet (or higher, courtesy of sound GAAP accounting principles). If Greece can be bailed out, surely that payment for the 7th $2,000 plasma TV can be buried under the rug, thank you IMF.
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Arrrr whats not in my wallet anymore? LOL.
cof is a joke.
this horrible report (and worse outlook) was better than expected; naturally cof up 4% right now.
I guess we're already in the midst of a debt jubilee and nobody announced it. No one will pay back the debt, but equities will keep rising.
~5% delinquency isn't anything new. That's about the current levels for CRE-tenants and also FHA mortgages. Also relatively flat from the previous month.
The real numbers on mortgage delinquencies are above 20%. The Feb. 02, 2010 FHA published numbers:
About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency's figures show.
What do you mean 'swept under the rug'. These are consumers. They will be rounded up and thrown in debtors prision! No bail out for you!
What's not to love about COF? Borrow from the taxpayer at 0%, loan his own money back to him at 29.99%, and who is going to quibble about 5% delinquencies? Sometimes I get the impression there are people who actually think the US is a democracy or something silly like that. It's serf and master, just like the good old Dark Ages. Vote Charlamagne in '12.
Except the "serfs" are free to form companies -- like GOOG, AAPL or hedge funds or work for Goldman Sachs.
Kinda changes things, no?
Its hard to succeed when you spend more time in bars than libraries. The "master" keeps feeding you another pint.
-BBH
What I can do may not be what everyone can do. WS and HF's were fine for me, but not everyone is so lucky. Zero debt and lots of cash only hold me over because I have more than most and can dip into principal. Sadly, lots of elderly folks who lived prudently and thought savings would smooth their retirement years have had to pay for the excesses and errors of COF et al and are finding it a tough go. THAT is what makes it a serf-master society.
I dont understand... bond portfolios have done very well over 2008/2009. I know of no "elderly people" who lost any money market or low risk savings.
John Bogle wrote a great piece at the end of 2008, where he said he follows the simple adage "invest your age in bonds" and since he was 73 year old... he was actually UP 2% in 2008.
The people who got killed in the downturn... were taking lots of risk. Typically in real estate. Or they were over-concentrated in stocks (which shouldnt really be "the elderly").
Finally... while an old couple may have lost 50% of the value in the "homestead"... they can buy in FL or AZ for 20-30% of the price. So no money is lost there. Retirement homes are the cheapest asset!
Well, let's see. For example, the BofA Regular Savings Account pays a whopping 0.10%. But that taxable income is nominal return. The real return (pre-tax) is -2.6% (using 2009 CPI of 2.7%. Kind of hard to live on fixed income at a negative interest rate
Not to mention that gas is $3 a gallon thanks to Bernanke printing money to bail out Wall Street.
It is criminal that the elderly who lived prudently must suffer (as anyone of any age) to pay for the excesses of the majority of unresponsible jackasses, but truely they grew up when America had true prosperity. Decent jobs, wages, and the gap between the CEO and worker was not as obscene as now.
They have benefitted from a solvent Social Security system, pensions, real estate appreciation etc.
They had at least as much opportunity to arrive at retirement age with zero debt and lots of cash as you or I. It's a tough go for everyone now, but now that the serf-master society is firmly entrenched, and the American "Information based" economy is doomed to failure, it is the young who will suffer the much more.
no, it doesn't change the fact that inflationary fiat monetary policy is a killer. But keep sipping that kool-aid and telling yourself you're educated.
Come on Tyler, shake the moths out and jump in the new wave.
Plasmas are so 2000, now we have LCD at 120MHZ and 3D enabled or the ultra-slim one zillion colors OLED TVs, you can get an 11" for just $2500!
:)
They also have 300:1 contrast ratio so when you run them they can blur out and finally die from the liquid crystals turning into dog poop.
I'm getting good at detecting imminent liquid crystal death. The monitor on the far right of the ransqwak videos isn't going to make it to 2011. But don't tell it. That's not compassionate.
Capital One are filthy sluts. I hope they go extinct soon.
Of course there are many waiting to eagerly take their place.
A slut must have done something pretty bad to you for you to degrade him or her by comparing him/her to Capital One. I am so sorry the relationship didn't work out for you.
Good luck, Ripped Chuck.
I'll stand up for slut rights as long as they don't ask for valentine's presents and the right to marry unless they only marry other sluts.
So you are a fan of usery? No you make a sarcastic joke for our enjoyment.
But you do assume that I would employ the services of either one? Hmmmm? You are not an arrogant elitist are you? Or you just don't like harsh language on a public post?
Sweet heart, in your anger you missed my joke. I was saying Capital One is lower than a slut and that you were degrading sluts by comparing them to Capital One. Now that's low!!
See my ha ha?
I deeply appreciate how pissed you must be because your comments are typically edgy and smart.
Take care.
Thank you Ms! Yes they are. And most sluts charge a reasonable price for valuable services rendered from what I have heard.
My experience with CO is through clients, friends and acquaintances. I have never had an "account" with them myself. They charge much more than I could ever consider paying. I learned the credit "game" in my early 20's.
After seeing so much wreckage that credit, especially this type has caused over the years, I have a raw spot concerning all these usurious bastards.
;-)
In October 2009, their monthly charge of rate was 9.04%. From October 2009 to January 2010, their net charge off rate has risen 1.37 percentage points or 15.2%.
Upgrade from Calyon today (obviously need to unload some inventory).
"We are making a near-term trading call, that the stock could bounce back to what we believe will be a 12-month high $30s to low $40s trading range, if total credit losses peak in the first quarter of 2010, as we forecast," the CLSA analysts told clients Tuesday.
IF TOTAL LOSSES PEAK....
This is more bad news being ignored by stocks
I found the market here:
http://www.djspooky.com/photos/pathisprologue/gagged.jpg
Gee thats funny. and helpful too.
Symbolism. The market can't speak because it is being gagged by all sorts of "interventions." We can't know the value of anything. The best we can do is second guess the motives of those who are holding the markets hostage, and make our calls from there.
You are angry. But it ain't at me.
Sorry, thought it was a casino.
FX is sure fun now a days though!
I can go with rigged casino and call it a day!!
:-)
Maybe you should also mention the news out of BAC? It reported a decline in delinquencies...not saying the world is great but you should do a better job of dispassionately reporting instead of cherry picking bad news.
Link -
http://www.bloomberg.com/apps/news?pid=20601110&sid=a5vJMXw7tZm8
Defaults in record high and China dumping US Treasuries = CLEAR BUY SIGNAL.
Bottom feeding.
This is the greatest bull market in 200 years, from here to DOW 36,000 as Cramer said, then the market would be a bit expensive, take some profits then.
BUY BUY BUY!!!
This is excellent news! But the rate is still quite low IMO. Seriously, we need a lot more people defaulting on their credit cards to teach them banksters a lesson or two. Hey, if they can rig the markets to screw us the least we can do is pay them back in kind. Think of it as getting back th money you lost "investing" in various wall street ponzi schemes such as the stock market, real estate, etc.
I'm tapped out, Marv. American Express has a hitman out looking for me.
One of AMEX hit men has gone under
Mann Bracken
http://www.sun-sentinel.com/business/yourmoney/fl-debt-collector-biz-020...
"
At one time or another, Mann Bracken was assigned to collect money owed to American Express, Johns Hopkins Hospital, M&T Bank, Midland Funding and many others. (Hopkins and M&T say they stopped doing business with the firm.)
Mann Bracken was formed in 2007 by the merger of three big debt-collection shops.
With lenders as clients, Mann Bracken was linked to the National Arbitration Forum, a dominant, supposedly neutral company that ruled on disputes between lenders and consumers. New York hedge fund Accretive held investments in both the arbitration group and Mann Bracken's telephone-collection operation, a company called Axiant.
"
Mann Bracken, just another parasite that attaches itself to the credit industry like a remora.
More filth that needs to be gone.
but, but, but... Karl Malden told me not to leave home without it!
does COF (Cum on Face) get to borrow @ zero and lend out @ 13% avg too?
I would assert that a large percentage of those ‘Charge off’s are not actual defaults but part of a long running scam by Capital One that prevents customers from closing their accounts.
Here’s how it works. You contact the company and they behave as if it’s being closed down. Then you’re hit with a penny fee or maybe the yearly card fee. You complain, then they ignore you, running a late fee. You complain again, but in my case they prevent me from accessing the phone service. Then another and another fee.
So the account is still on their books, so they’ve got a securitized asset that’s a no risk money maker.
Right now I’m working with an attorney to sue them. I doubt most of their regular clientele can afford attorneys.
Capital One bank CDS is actually tighter today by about 8 bps to 102 bps despite that news
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