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Friday, January 18, 2013

AmEx US Card Income

Because the future's so bright:
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.  

AmEx asked me just today if I would like to lend them money (ie. open savings account). I take this as a sign that they are where WaMu was in early 2007.
They shouldn't be, but I haven't read the financial report yet. I'm trying to finish the mortgage reg analysis but I am very busy.
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