Friday, January 18, 2013
AmEx US Card Income
American Express Co., the lender that plans to cut 5,400 jobs this year, said profit at its U.S. card business declined 42 percent in the fourth quarter as the firm set aside more money to cover soured loans.We have, of course, no idea how that happened. They increased their loss reserve 56%. International card income is a big factor here, and when I get time I will read their financials.
We all should be worrying about the bad loans in China, which by now must have reached epic levels. I read all this stuff about recovery there, but it sure looks to me like the bare sea floor exposed right before the big wave rolls in. Their lending is insane.