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04 Aug Credit Cards Losses Mean More Credit Tightening

Credit card losses at large banks continue to pile up. This will mean less credit for consumers in the future. Citigroup reported that it lost $176 million on credit card securitization operations in the second quarter of 2008. That is on top of setting aside $735 million for credit losses and over $345 million in North America alone in additional costs of credit. Even if you don't know what all those things mean, that's a lot of money! Keep in mind this other tidbit: Citigroup earned $243 million in the year-ago period on the same credit card lending activity.
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