But What About the Consumer?
If all those multi-billion dollar write-downs weren't enough, investors got something else to worry about last week with a huge surge in defaults on credit-card debt and auto loans.
Along with Citigroup's other bad news, the bank added $4 billion to a reserve account for future losses on consumer loans. The following day, JPMorgan Chase also warned about consumers falling behind on credit cards and upped its reserve to cover such losses by $2.3 billion.
All this helped to further spook the Street, leaving the S&P 500 down 6.48% this year as of January 16.
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Along with Citigroup's other bad news, the bank added $4 billion to a reserve account for future losses on consumer loans. The following day, JPMorgan Chase also warned about consumers falling behind on credit cards and upped its reserve to cover such losses by $2.3 billion.
All this helped to further spook the Street, leaving the S&P 500 down 6.48% this year as of January 16.
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posted by Bob Moser at
4:55 PM
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