Banks’ Future Woes in One Word: Plastic
By Brett Weiss, Maryland Bankruptcy Attorney on Mar 15, 2009 in General Bankruptcy Information
So read the headling in this CNN-Money story. As this article noted:
Just last month, Bank of America CEO Ken Lewis warned lawmakers at a high-profile Congressional hearing on the government’s $700 billion rescue plan that he had no doubts 2009 would be an “awful year” for the credit card industry.
Unfortunately for Lewis and his peers, the nation’s leading banks dominate the credit card landscape.
Of the nearly $76 billion in credit card loans in 2008, nearly $46 billion came from Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Citigroup (C, Fortune 500) alone, according to credit rating agency Moody’s.
This isn’t a new fear. See my article, “The Coming Meltdown. Part Four: Consumer Credit” for a discussion of why there’s a problem and what the impact can be.
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