Capital One in serious trouble?

Discussion in 'Stocks' started by Tom631, Sep 29, 2008.

  1. Tom631


    Never hear any talk about them during all this bank crisis stuff but in watching their stock it seems something is going on behind the scenes...

    Didn't they have a lot of exposure to Greenpoint mortgages from the North Fork buy out does anyone know?
  2. Good idea to also check with their Mexican subsidiary "Capital Juan" to keep tabs on the credit crisis going on down there.
  3. There was some insider awhile back strongly hinting that COF was in serious trouble. I think they're gone, and I'll add COF to the shitty stock list.
  4. I withdrew some money from my Cap One money mkt acct a few months ago.

    Now today I got a call from them, saying that they noticed I had withdrew money, and asked me if I had any concerns about the account, or if I was even going to close the account. Sounds like it's getting bad over there. I will be shorting this once the ban is lifted.
  5. i will max out my credit card and dont pay back
  6. S2007S


    COF is going to be hit by credit card delinquncies. I think the stock drops 40-50% over the next 2-3 months.
  7. jasonjm


    dude, someone will buy your debt from cap one, and come after you...

    not a good plan
  8. Ridiculous that they are still 60% above their 52 week low.
  9. Tom631


    I think I just found something regarding Capital One..In reading just now the article about losses at Discover Financial ( see link for story below ) there is also this about Capital One recently having to add $200 Million to their reserve to cover high amount of losses/defaults.

    Other credit card companies have also seen increased losses recently. Capital One Financial (NYSE:COF) recently added $200 million to its reserves to cover higher losses. The company said the increase reflects "continuing weakness in the U.S. economy, as observed in recent trends in economic indicators, including home prices and the unemployment rate." American Express (NYSE:AXP) also set aside $600 million in added provisions to cover bad debt.

    Bottom Line
    Higher credit losses in the U.S card business cut earnings for Discover Financial Services in its most recent quarter. This trend is expected to continue over the next year.
  10. i hope so they hold my car loan....
    #10     Oct 1, 2008