Capital One's Accounting Gimmick

Capital One Financial Corp. (COF), an issuer of MasterCard and Visa credit cards, said on Friday U.S. credit card defaults fell in April, beating analyst expectations, as the company changed its customer bankruptcy accounting.

[...] In a regulatory filing, the company said the annualized net charge-off rate for U.S. credit cards -- debts the company believes it will never collect -- fell to 8.56 percent in April from 9.33 percent in March. Under the accounting change, Capital One is waiting longer to declare the debts of bankrupt customers uncollectible.

Comments

[notanexpert:]

All the accounting games in the world won't help COF's 'real' financial condition from being exposed only temporarily delay the truth from surfacing. Take a good look at the insider stock sales for this fine and honest bank. Like roaches when a light is turned on their truths scatter. This stress test approved bank will see it's stock in the low single digits before this financial crisis ends. When you live by the lie you die by the lie. This company has learned nothing from Citigroup, AIG, Ambac, MBIC, Freddie Mac or Fannie Mae other than how to lie, twist and distort the truth. Reduced charge-offs....... what BS! Even Capital One can't believe its own lies. The spokesperson at Capital One reminds me of 'Baghdad Bob' and his tall tales that didn't pan out either.

May 24 12:37 PM

[ozcutty2:]

Yeah, what a crock, pain for at least 12 months to come

May 24 09:28 PM