First, the Innovest webcast this morning - before the failed vote in Congress - describing their analysis of credit card issuers and forecasting serious issues ahead for those credit card issuers who live for their delinquency oriented business models and exploitation of their cardholders vs. those issuers who are serious about having a repayment business model and work with their customers accordingly.
Second, Thad Peterson's "What Now?" post tonight on his Banking on Customers blog. Thad reminds us that as "A.P. Giannini, the founder of Bank of America said, 'If an institution becomes great, it is usually by the consent of the people it serves.' At this time, in this place, truer words were never spoken."
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RBC is doing several smart things here - announcing a new person-to-person service that's incrementally useful - not the "be all, end all" mobile payments service. They're making it easy to participate and doing some smart adaptive risk management too. The technology for the new service is being provided by paybox, a German mobile payments solutions company. Read on for details.
As part of its announcement, the OTS provided a Fact Sheet on Washington Mutual .
Included in the transaction is the card services segment of Washington Mutual - according to the presentation prepared by JP Morgan Chase, it will become the #1 US credit card issuer with $181 billion in receivables.
If true, the combination would bring together the #2 US credit card issuer (JP Morgan Chase - by receivables) with the #6 issuer (Washington Mutual). Based upon year-end 2007 numbers, the combined company would have $177.7 billion in receivables vs. Bank of America, the current #1 US credit card issuer, with $158.1 billion in receivables. For more background on Washington Mutual's credit card business segment, see this Washington Mutual Card Services presentation from July 2008.