FDIC: ‘Problem’ List Grows – But Earnings Up, Charge-offs Down

Insured banking institutions reported earnings of $21.6 billion in the second quarter of 2010, up significantly from the year-ago loss of $4.4 billion and marks the highest quarterly earnings since third quarter 2007, the Federal Deposit Insurance Corp. reported today.

Average Credit Card Debt Down to 8-Year Low: Below $5,000

Credit card delinquencies – payments overdue at least 90 days – fell again in the second quarter of 2010 – and the average individual card debt fell below $5,000 for the first time since 2002.

U.S. Bankruptcies Jump to Highest Level Since 2005

Consumer and business bankruptcy filings rose 20 percent in the 12-month period ending June 30, 2010, according to the Administrative Office of the U.S. Courts. It is the highest number of bankruptcy filings for any period since many of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect.

Banks Finally Start to Ease Lending Standards, Fed Reports

Although modestly, big banks are starting to ease lending standards, particularly vital commercial and industrial loans to small businesses, according to a new report by the Federal Reserve. The Fed’s July survey of senior loan officers that examines lending practices for the previous three months found the first “easing of standards on commercial and industrial loans to small firms since late 2006.”

Credit Card Debt Falls for 21st Month in June, Fed Reports

Overall consumer credit – credit card balances and other loans not tied to real estate – continued slipping in June – as Americas persist in reducing their debt in the midst of a weak labor market and sluggish economic recovery. Credit card balances declined for a 21st month – to their lowest level since late 2005.

GE’s CareCredit: Health Care Lending Spurs Investigation

New York Attorney General Andrew Cuomo is investigating possible “predatory health care lending” that pushes vulnerable patients deeper into debt after using GE Money’s CareCredit, a credit card promoted by medical treatment providers.

Stagnate Recovery: Consumers Boost Savings, Reduce Debt

On Tuesday, Commerce reported that the personal savings rate – the amount Americans don’t spend from their income – increased to 6.4 percent in June, the highest level since June 2009. Before the financial crisis and current recession, that savings rate wobbled slightly between 1 and 2 percent for years.

GAO Finds Deceptive Practices in Probe of For-Profit Colleges

The independent Congressional watchdog agency said it investigated 15 for-profit U.S. colleges that draw high rates of federal financial aid and found that all “made deceptive or otherwise questionable statements” to its undercover applicants – while 4 of the colleges encouraged fraudulent practices.

‘Cash-In’ Refinancing Up as More Pay Down Mortgages

In the second quarter of 2010, 22 percent of homeowners who refinanced their first-lien mortgage used the extra cash to pay down their principal, also known as “cash-in” refinancing, according to Freddie Mac. That ties the record for the third highest cash-in share since Freddie Mac started keeping such records in 1985.

Consumer Confidence Dives on Scarce Jobs, Stagnate Income

Consumer confidence plunged in July to a 9-month low as concerns over personal finances and the economic outlook intensified, signaling possible trouble ahead for an already sluggish recovery, a private survey reported. But more troubling could be the impact such sentiment could have on consumer spending in the months ahead.

Next Page »