Lilguy

How Much Will Citi's Credit Card Losses Rise with Unemployment?

Oh yeah, credit card debt at Citi, BAC, AmEx, etc., will go bad as unemployment continues to grow. OTOH, I don't think it will have the same effect as mortgage defaults have had, simply because people are unable to leverage their credit cards as much as they leveraged their homes. Still, it's gonna hurt many banks' asset base, reserves, and ultimately lending ability. Another arrow in the chest of an early economic recovery.