Wednesday, April 22, 2009
Capital One losses and who are the MORONS financing the thugs?
Capital One Lost $112 Million in 1st Quarter
By Binyamin Appelbaum
Washington Post Staff Writer
Wednesday, April 22, 2009Capital One Financial yesterday reported a loss of $112 million in the first quarter as defaults on credit card loans rose more quickly than the company had predicted.
The McLean company also offered insight into the decline in lending by major banks, saying that it is increasingly choosing to invest money in securities rather than making new loans. The company’s investment portfolio grew by $14.1 billion over the last year, while its loan portfolio grew by $5.8 billion.
Gary Perlin, the company’s chief financial officer, said investing was currently safer than lending, and that Capital One would wait for economic conditions to improve before shifting the money back to lending.
“Our plan is to eventually shrink the investment portfolio,” Perlin said, “by taking advantage of attractive lending opportunities when the market returns.”
Capital One reported a first-quarter loss of 45 cents a share, compared with a profit of $1.47 a share, or $548.5 million, during the same period last year.
The results were viewed by financial analysts as more representative of the problems besetting the banking industry than the profits reported by larger firms, including J.P. Morgan Chase and Bank of America. Those companies also struggled with losses in credit card and retail banking operations, but were able to post profits based on the strong performance of their investment banking operations.
“Capital One’s earnings announcement shows that the recent run of positive earnings from other financial service players should not be misinterpreted as the end of Wall Street’s financial woes,” wrote Red Gillen, an analyst with Celent.
The company said losses in its credit card portfolio reached 8.4 percent in the first quarter, above the company’s projected 8.1 percent. The company said it expected the loss rate on its domestic credit card portfolio to surpass 10 percent in the coming months.
Capital One operates one of the nation’s largest credit card businesses. The company has moved increasingly into retail banking, allowing it to use deposits as a cheap source of funding for its loans. The company acquired Chevy Chase Bank in late February, creating a retail presence in the Washington area for the first time. The deal helped Capital One increase its reliance on deposits from 52 percent of funding last year to 65 percent this year.
Capital One accepted a $3.56 billion investment from the Treasury Department in November, but Perlin said the growth in deposits has allowed the company to refrain from borrowing from any of the government’s other emergency aid programs.
The company also said it did not take advantage of recent changes in accounting rules that have allowed some banks to report higher values for troubled assets.
First of all, the author of this article is an idiot.
“The company has moved increasingly into retail banking, allowing it to use deposits as a cheap source of funding for its loans.”
Capital One is NOT using the deposits to fund loans! How can reporters be so IGNORANT?
The ignorance or maybe even willful disinformation by the mainstream media is the root cause of all our problems.
Many millions of people have watched Zeitgeist: Addendum and The Money Masters (watch FREE online!), it’s hard to believe that Binyamin Appelbaum really doesn’t know that the banks CREATE the money electronically out of thin air.
And it is truly shocking to read that THE AMERICAN PEOPLE are financing the Capital One scum. If the Americans with money had any conscience whatsoever, they’d close their Capital One accounts and put them out of business. But then again, with reporters like Binyamin Appelbaum, it’s no wonder that most Americans are clueless idiots, cheerfully funding their own demise.
Capital One GREATLY contributed to the foreclosure crisis with its refusal to report the credit limits.
Many MILLIONS of hard working decent people had lower FICO scores due to Capital One’s credit reporting. They paid higher interest rates and insurance premiums and they were forced into subprime loans.
What do the stupid Americans do?
The STUPID Americans deposit their cash with Capital One to ensure that this vile outfit survives.
It just goes to show that having money is NOT a sign of being smart. These idiots don’t realize that they’re trading a high return on their investment for the lives of their friends and family.
Crime is rising everywhere. Yes, they can live in their gated communities, but do they really want to live in their own PRISON?
I defaulted on about $25,000 owed to Capital One.
I sued Capital One and I LOST. Federal judge Neil Wake determined that Capital One’s credit reporting lowered my FICO scores, but he ruled that it was LEGAL! Judge Wake is so deranged, he ought to be immediately removed.
Fortunately, not ALL judges are as corrupt as judge Neil Wake and due to class actions in other courts, Capital One now has to report the credit limits.
Too little, too late.
Capital One and the CRAs should have had to REIMBURSE the consumers’ damages and they should have had to pay PUNITIVE damages.
The $25k I owed Capital One isn’t nearly enough “compensation” for my damages. Since 2003 I had been litigating to get the Cap One limits reported. I’ve given years of my life.
It bites to see Americans financing these criminals—not only with taxpayer bailout money, but with INDIVIDUAL deposits.
This URL sent to Binyamin Appelbaum.
“Are you really so ignorant or is your editor telling you to mislead your readers?
Christine”
2004 Suit (credit limits, credit reporting - on appeal) • Capital One - ruthless banksters • (0) Comments • Permalink
