Here’s your deteriorating credit card industry for you. American Express is seeking $3.5 billion from the government amid rising defaults, reports WSJ. It’s not clear what the company would use the money for, but we’re guessing the answer is: you know, stuff. That AmEx would turn to the fed is no surprise, given that the debt market has turned hostile to its industry.
They’d be silly not to apply for government money, even if it were possible to raise private sector cash, since the government is basically powerless to impose any type of restrictions on borrowers.
The article notes that rival credit card issue Capital One has already raised $3.55 billion, so it’s only fair…
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