American Express’ Aggressive Credit Card Loans Hit Bottom Line with 72% Profit Reduction
After years of milking the Credit Card Bubble for all it was worth, American Express reported a 72% reduction in profits this quarter while simultaneously announcing 7,000 layoffs of its own employees. That happened on a day some are calling Black Monday, when over 50,000 other layoffs were announced by other employers from Caterpillar, Sprint, Chrysler and more.
Now, the writing on the wall for credit card defaults has been glowing in neon for months now. This was not something that American Express was surprised about. We talked about American Express just last month when they offered up a change in their policy that might even allow them to take money out of an account holder’s bank savings or checking account without any notice or challenge.
Now the depression hasn’t yet set in because all credit cards have not yet been cancelled, but credit card companies that have merged to the point of over exposure might have to make that choice soon if they see repeated quarters of profit reductions or even losses. So with that said, make sure you are protecting yourself and your credit because the ride has just begun.
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