Visa and MasterCard purveyor Capital One Financial (NYSE: COF - News) fell $20.12 to $30.48 (39.76%) after agreeing with federal regulators to increase its capital levels and reserves in case its credit-card and other customers start defaulting on debt. The company also will upgrade its information management systems. Regulators are worried about the rapid growth of Capital One's loan portfolio, which has a substantial subprime segment, said Morningstar stock analyst Richard McCaffery. Capital One's credit quality remains better than expected, and bad loans haven't been a problem yet, McCaffery said. Still, one ratings agency, FitchRatings, is reviewing Capital One's long-term debt for a possible downgrade. Yesterday, the firm posted strong second-quarter results and raised earnings growth targets for 2002 to 30%. http://finance.yahoo.com/q?s=cof&d=t OUCH!!!
I am sure they are OK but aggressive - but what a hit dude????!!!!!...... glad I already financed the car LOL!! aarrfff - dogman
I know! Get this, they were slamming it on CNBC yesterday and to me that indicated a big drop coming soon like when they bashed Providian. I almost shorted the crap out of it. I would've been rich today!
