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How Much Credit Is Too Much? Where AmEx Went Wrong

Actually, where Amex went wrong was in broadening their card holders. At one point they were exclusive to wealthy clients. About 5 years ago they decided to issue to lower income individuals.

In a sense, this made sense, as they had basically all of the rich market, so expansion necessitated that they broaden to grow. And while the economy boomed from the housing bubble, it looked like a brilliant move. In the current economy, they are paying the price for their decision. By the way, I'm not saying that this negates your point about raising limits. They weren't alone in this, as all card issuers were raising limits during the housing boom.

This was purely a Chenault decision, so while he took the kudos for brilliance during the boom years, he has to take the brickbats now. Like all CEOs, his performance is dependent on general economic trends. They, and analysts, tend to forget that 85% of a CEOs performance is due to general economic trends. How could they demand exorbitant compensation if they remembered? ;-)