- - Thursday, September 15, 2011


Credit card defaults, late payments slide

NEW YORK — Credit card issuers had a somewhat bumpy summer, but most of the top banks are reporting that their customers continued to make payments on time.

Default rates are down at three of the four companies reporting their August results. Only Capital One Financial Corp. says it saw an uptick in the rate it wrote off balances as uncollectible.

Capital One also had a slight increase in the rate of payments late by 30 days or more, considered an indicator of future default.

Discover Financial Services, American Express and Chase say their rates continued to decline. Bank of America and Citibank were expected to report August results later Thursday.

The results were similar in July.

Analysts expect the rates to remain low, although individual banks might see blips along the way.


Morgan Stanley chairman to retire at end of 2011

NEW YORKMorgan Stanley’s chairman John Mack will step down as chairman and leave the board of directors at the end of 2011.

The widely expected move brings an end to a storied Wall Street career for Mr. Mack. The North Carolina native was CEO of Morgan Stanley from 2005 to 2009.

Current CEO James Gorman will take over the chairman’s role.

Mr. Mack is largely credited with saving the investment bank during the financial crisis by negotiating a $9 billion investment from the Japanese bank Mitsubishi UFJ Financial Group. However, Mr. Mack was criticized for the firm’s poor performance during and after the crisis before handing over the CEO spot to Mr. Gorman in 2010.

Morgan Stanley stock jumped 6 percent to $16.42 as of 2 p.m.

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