There has been much grumbling among credit card execs who oppose the pending changes in the way they do business. The new credit card laws will put severe limits on how much and how often interest rates can be raised. This is bad news for big corporations like CitiGroup and Bank of America, who generate much of their revenue from interest income.
On the other hand, smaller players like JP Morgan Chase, Discover, and American Express are in pretty good shape, even with the changes at hand. That's because these companies didn't expand their lending as quickly as their larger competitors. As a result, they haven't suffered as much from the sub-prime credit crisis and the upcoming credit card reform.
JP Morgan Chase is the largest issuer of Visa credit cards. American Express and Discover have their own card networks, and don't rely heavily on repricing and interest for their revenue. AMEX has reported losses, but the company has managed to stay profitable throughout the turmoil.
What will a restructuring of the big credit players mean for the average cardholder? Hopefully it will mean more competitive credit card terms, but it could also mean an end to "easy credit".
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