In his op-ed, Levitin writes: "The card industry’s business model is the heart of the problem and needs to change. Just as with subprime mortgages, the credit card business model creates a perverse incentive to lend indiscriminately and ignore delinquencies."
Read the full article for more.
Across the industry, many payments professionals have worked hard to make sure everything in the card payment systems is ready for the upcoming annual "Black Friday" and "Cyber Monday" onslaught of volume. Chase Paymentech's Pulse Index will be tracking things over the weekend - so you can see how the currently challenged US consumer economy is doing vs. the last two years in the ecommerce realm. So far, the big news is a 12.8 percent decline in the average ticket.
Meanwhile, enjoy the holiday with friends and family! Remember, it's just the best!
According to ING DIRECT's survey findings: "Although Americans seem more concerned about holiday spending during the current economic climate, half of them actually plan to spend the same if not more on holiday gifts this year as compared to last year. Most surveyed also indicate they plan to spend between $300 to over $1,000 on gifts. While this may help struggling retailers, the spending habits of consumers are not improving and their wallets are continuing to stretch. In plain terms, Americans are nowhere near where they should be in terms of saving their money."
If you're really a banking and payments news junkie, you might also be interested in this new banking page on Alltop.com.
The release said: "The U.S. government is committed to supporting financial market stability, which is a prerequisite to restoring vigorous economic growth. In support of this commitment, the U.S. government on Sunday entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital."
A copy of the term sheet was also provided.
See also the following stories: Washington Post - U.S. Putting Together Rescue for Citigroup, New York Times - U.S. Plan to Aid Citigroup Said to Be Near Approval.
There are some great comments in Chris' notes. For example, when asked about hiring, Kuhlmann said: "We don’t hire bankers, because bankers come in with their DNA and they have their legacy which won’t fit. Instead we hire dancers, musicians and artists. People who can deliver a great and different experience. "
See also Kuhlmann's new book: The Orange Code: How ING Direct Succeeded by Being a Rebel with a Cause - now available in the Payments News Book Store on Amazon.com and in a Kindle edition.