million allowance for loan losses.
The credit card company has chosen not to specifically update its outlook for managed charge-offs given "significant uncertainty in the economy." What is the problem with that - the investing public surely would completely condone (and welcome) any and all optimistic lies at this point.
Of course if one removes the loss provisions, all is good. That would assume nobody will ever be delinquent on their credit card payments again...But it would be in line with the accounting rubbish that all big banks have been feeding their flux capacitors to pretend they can go back in time to 1985 when the silent majority actually believed a word of what they said.
The company added $124.1 million to allowance for loan losses in anticipation of higher expected charge-offs in 2009. Allowance as a percent of reported loans increased 36 basis points in the first quarter of 2009 to 4.8 percent. The coverage ratio does not include the $9.5 billion of Chevy Chase Bank loans that were added to the balance sheet in the first quarter.Too bad they need to provision for roughly double that to catch up with reality. Sphere: Related Content Print this post