Are banks finally learning on credit card lending?
The rise is striking because it includes offers to riskier borrowers who were shunned as recently as six months ago. But this time, in contrast to the boom years, when banks “preapproved” seemingly everyone, lenders are choosing their prospects more carefully and setting stricter terms to guard against another wave of losses.
via Lenders Extend Credit to Risky Borrowers Again – NYTimes.com.
Anyone could have told them this ten years ago. There have been books like Credit Card Nation and Maxed Out which spelled out the danger in risky lending as well. Elizabeth Warren had questions about CITI’s practices regarding credit cards back when Sandy Weill was running the place. Alas, now they learn.
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