• Most Popular
  • Most Shared

Fitch says US card losses hit 10.4 pct in June -FT

Wed Jul 1, 2009 4:51am EDT

July 1 (Reuters) - Fitch Ratings said U.S. credit card losses hit a record 10.44 percent in June, squeezing profit margins for credit card securitizations to a 10-year low, the Financial Times reported.

Fitch said profit from off-balance sheet vehicles backed by credit loans in June fell below the 5 percent threshold for the first time since November 1998, the paper said.

A spokesperson at Fitch said the report would be issued later on Wednesday.

Last week, Moody's Investors Services said U.S. monthly credit card charge off rate -- the percentage of debt it does not expect to be repaid -- surpassed 10 percent and hit a sixth straight record high in May.

Credit card companies enjoyed hefty gains during the credit boom, but are now losing billions as debt-burdened Americans lose jobs and default on credit card payments. (Reporting by Tenzin Pema in Bangalore; Editing by Dan Lalor)



More from Reuters

Photo

RIM profit, outlook top forecasts; shares surge

OTTAWA (Reuters) - Research In Motion posted a big jump in profit and issued an even stronger outlook on Thursday, as sturdy demand from holiday shoppers helped the BlackBerry maker fend off the competition.

» More Top News
Pedestrians are reflected in a Citigroup window in Boston, Massachusetts. REUTERS/Brian Snyder

Citi's next challenge

Citigroup's plan to extract itself from the government's clutches didn't go as planned. For the bank to succeed, one of two things need to happen.  Full Article 

ECONOMY
Aerospace Industries Association President and CEO Marion Blakey makes remarks during the Reuters Aerospace and Defense Summit, December 16, 2009 in Washington.REUTERS/Mike Theiler

"We're not asking for a bailout"

If the U.S. is serious about creating jobs it should invest in aviation programs, says the chief of the Aerospace Industries Association. Just don't call it a bailout.  Full Article 

AEROSPACE & DEFENSE SUMMIT