Yahoo AP Capital One said it is taking a $1.9 billion provision for loan losses in the fourth quarter, including about $1.3 billion in charge-offs. The company said it is also adding about $650 million to its charge-off allowance because of recent delinquencies in its consumer lending businesses and "continued deterioration" of approximately $700 million of home equity lines of credit originated by its GreenPoint Mortgage unit, which shut down in August.
Subprime the gift that keeps on taking.
18 comments:
First to say these greedy suckers with the cartoon ads are gettng what they deserve.
h.
I SECOND that.
Rob, what are you doing up at 3:35 in the morning? Was it the earthquake?
Just trouble sleeping. Had a big Carl's Jr. burger last night and had a little heartburn which is really rare for me.
If you read the article the level of and acceleration of the deterioration is alarming.
Isn't that Recent Earthquakes site cool?
Let's see:
North Fork '04 buy of GPT:
$6.3 billion
COF '06 buy of North Fork:
$14 billion in '06
COF closes Greenpoint in '07:
priceless
What's in your wallet? Nuthin'
The days of relabeling bullshit as premium fertilizer and reselling at a profit are over. No one rationally wants to own consumer debt or investment real estate. The only places left are retirement funds and such who are going to have a lot to answer for when their exposure is ultimately revealed. I was pissed when I dug down in my Fidelity MM and discovered they consider loans to Countrywide to be asset backed commercial paper. How many trillion times is crap like that not getting caught?
Lending money to deadbeats is big business. BOOYAH!
Word on the street, which I heard from a local career placement professional, is that CapitalOne has a relatively unhealthy workplace culture. I don't know if it's as bad as the culture at Countrywide, but I think it's safe to say that things there are going from unpleasant to miserable.
That said, I do have a credit card with COF, but what they don't know is that they will be getting precious little interest from me, as I have no intention of being a "roll-over" (credit industry slang for someone who keeps a balance on a credit line and who therefore accrues interest; opposite term is a "transacter", someone who uses the card but pays it off every month before interest accrues.)
Hope they will stick around and not get rid of their best selling argument: no fee on foreign transactions (they even eat the 1% Visa/MC fee)
The Euro is expensive enough not to pay an additional 1-3% on purchases there.......
Oh, I think they'll stick around. Their primary selling point is that they're not nearly as awful as their competitors (looking straight at Bank of America.) They'll need to tighten up their standards on who they accept under what conditions, however. The good news is that (some) people will be getting far fewer unsolicited advertisements for low-fee credit cards.
CA budget news out shortly, not looking pretty. I assume the cities and special districts are awaiting their fate as the state starts taking money away...
11AM Pacific. LATimes has apparently leaked early. The threats are hollow, this is a way to rile the public. I'll be posting all over this issue.
> this is a way to rile the public
Yes. First shot was the threat to release 20,000 prisoners. Next will be threats to cut EVERYTHING, to double tolls on all bridges and to raise UC/CSU fees.
Once everyone is screaming, the real plan will come out and will less painful (at least on the surface) than what was threatened.
Arnie is just setting expectations so he can make some unpopular moves without it sticking to him.
Thanks Rob!
Looks like they're just dressing up the old Washington Monument ploy. I hereby redub it the "emptying the prisons" ploy. I don't want to steal Rob's thunder, so I'll leave it at that.
Y'all spend $14 billion a year on prisons? Dang, how many folks you got locked up out there? We've got a few too, you want 'em back?
"Had a big Carl's Jr. burger last night..."
next time make an In-N-Out burger
i have a small mortgage on a home I rent, and Greenpoint services it.
I'm also a transactor with a Cap One card.
So, who is my mortgage payment going to if I do the online payment to GreenpointServices-dot-com ??
when I dug down in my Fidelity MM and discovered they consider loans to Countrywide to be asset backed commercial paper.
Haha...exactly my issue too.
We have Fidelity for my 401k. I have almost all my funds there in DODFX, which I wanted to sell when it was over 50 last month. However, I can't move it to "pure cash". Not knowing what might be the basis of the MM, I decided to just ride this fund, which has less than the average exposure to financials.
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