Credit Defaults in Decline in July
USA Today has a look inside some recent filings by the big banks that show defaults on credit cards and other loans declined slightly in July.
Bank of America, JP Morgan Chase, Citigroup and Discover Financial Services all “saw bad loan levels fall.” Most declines were modest, but they are still seen as a positive sign. American Express saw their bad loan levels fall for the second straight month.
Some experts say this is a sign of overall economic stabilization. However, it could be a sign that banks are simply lending less. Indeed, the report mentions the Federal Reserve saying that overall lending is still very tight and may remain so through the rest of the year.
According to the report, credit card defaults usually tack unemployment, which continues to slowly rise.
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