LONDON (MarketWatch) — Capital One Financial was cut to neutral from buy at Goldman Sachs as the broker said it’s becoming more cautious because loan shrinkage is continuing, a new Fed late fee directive could reduce subprime revenue by 5% to 10% and February delinquencies may tick up. Discover Financial Services was kept at buy as the late fee impact is smaller and as they are growing on-card loan and network revenue.

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This blog discusses subprime mortgage problems. Subprime problems began when lenders offered loans to potential home owners with bad credit or credit / income that did not meet the standards of traditional lending. Subprime mortgages for people with bad credit or no credit face an uncertain future. Once the hope of many to enter into home ownership has now been corrupted both by overreaching consumers and predatory lenders. I hope to follow the aftermath of this crisis.

Mortgage Lender Implode-o-Meter






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