Opening cards
Unprecedented losses on credit card loans are haunting banks and could cause pain for investors in credit card asset-backed securities (ABSs). But despite this, dealers say government support has rehabilitated the market for credit card ABSs. Mark Pengelly reports
Subprime mortgages might have started the financial crisis, but credit cards have become another potent symbol of rocketing consumer debt and over-inflated credit markets. Now, like subprime mortgages, they are also causing towering losses for banks. In June, losses on US bank credit cards reached 10.4%, according to Standard & Poor's (S&P) - up 4.7% from May and a massive 69.2% over the corresponding month in 2008.
"This is the first time in 25 years that the credit card business has been
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