Capital One Sells Best Buy Credit Cards to Citigroup

Capital One reported QE December 2012 financial results on January 17

Capital One To Sell Best Buy Card Portfolio

Capital One and Best Buy End Credit Card Partnership

MCLEAN, Va., Feb. 19, 2013 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced that it has reached an agreement to sell the portfolio of Best Buy private label and co-branded credit card accounts, with current loan balances of approximately $7 billion, to Citi. In addition, Capital One and Best Buy have agreed to end their contractual credit card relationship early.

The sale of the loans to Citi, which is subject to customary closing conditions, and early termination of the Best Buy partnership are expected to be finalized in the third quarter of 2013. Upon closing, Capital One expects that the proceeds from the sale will approximate the book value of the accounts, resulting in no significant gain or loss on the transaction.

"We have a proven, scale partnerships infrastructure and a great portfolio of partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships. "Our partnerships business continues to deliver strong contributions to our results and serves as a platform for future growth potential."

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $212.5 billion in deposits and $312.9 billion in total assets outstanding as of December 31, 2012. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has more than 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

Capital One To Sell Best Buy Card Portfolio

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Peter Schiff: Fed Chair Bernanke Throws US Dollar Over the Currency Cliff!

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Peter Schiff

Ben Bernanke Throws the Dollar Over the Currency Cliff

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America: Land of Indefinite Corporate Power, Debt, Detention, Quantitative Easing, Wars

Ah yes, America, the Land of the Fee and  Home of the Grave. Big Brother wages perpetual war to keep the masses rooting for him while the national security and surveillance state ramps up and comes down on you, your family, friends, neighbors, and fellow Americans. Ahead is not only a Fiscal Cliff, but a Day of Reckoning - not more and more exciting TV shows, celebrity news, and 'all is well' corporate mass media coverage. The Matrix has plans for you and your best interests are not in their equation.

You and your descendants will be expected and forced to pay up in taxes, fees, and inflation. Your discretionary income will continue shrinking - but not for the Wall Street Banksters, corporate elite, and politicians wealthy from bribes. They are exempt from paying up by design. You pay, they play. The tab per American citizen (man, woman, child) for the funded USA debt is $51,038 and your share of the FYE 2012 interest expense is $1,191. Both of these per capita amounts, from government data, are grossly understated.

The Supreme Court in January 2010 swept aside the individual citizen with a ruling that corporations are persons with electioneering rights and can attempt to sway elections by authority of the Citizens United case. Even Presidential candidate Mitt Romney said, "corporations are people".

President Obama crushed individual liberties, with the overwhelming support of Congress (from the Tea Party caucus to the Progressive caucus voting 'Yes'), by signing the National Defense Authorization Act late on New Year's Eve (December 31, 2011). This provided for the indefinite detention of America citizens (without legal counsel, a judge, a trial, or a jury of peers) as decided by the Office of the President. This is, of course, the Stalin, Mao, Hitler, Mussolini, Pol Pot totalitarian system of citizen control and ultimately annihilation.

Congress has shown blatant and willful disregard for over a decade of the USA's fiscal future by running up funded debt of over $16 trillion (unfunded is easily in excess of $50 trillion). Next will be Internet censorship. Dissent is the new inconvenient truth. Dissenters will be labeled terrorists for NDAA indefinite detention purposes. The War on Terror is the War on You. The security searches and checkpoints, including groping your genitals to teach you compliance and submission, have already begun.

With all 3 branches of the USA federal government assaulting the American citizen's right to life, liberty, and the pursuit of happiness that leaves the Federal Reserve for the final blow. Now Federal Reserve Board Chairman Ben Bernanke has announced the beginning of the end of the The Great American Empire with indefinite quantitative easing, with indefinite money printing, with indefinite inflation. This is not QE 3, this is QE Infinity. This announces the "U.S. Dollar in not worth the paper it is not printed on" - more and more dollars, less and less value. The final financial and economic assault on the American citizen has begun and will now intensify. You'll be seeing more of this, as you already have, as you shop for food, fuel, and basic living needs.

Egan-Jones rating agency immediately downgraded USA sovereign debt from AA to AA- upon the Federal Reserve's QE Infinity announcement. The SEC most likely will announce a retaliatory investigation of Egan-Jones later in an effort of intimidation and censorship of the truth. The SEC and Federal Reserve are controlled by the Wall Street Banksters and they don't want you to know America has been pillaged by them. The world's worst and most criminal credit rating agencies who also serve the Wall Street Banksters (Standard and Poor's, Moody's, and Fitch) have negative outlooks on the bankrupt American Dream but that is as far as they dare go. Moody's and Fitch continue to think we will believe the USA is AAA while Standard and Poor's rates America at AA+. Among other credit rating agencies a more dismal and accurate story is told:
Dagong Global Credit (China): A, Outlook Negative
Weiss Ratings: C-, equivalent to BBB- or 1 level above junk, Outlook Not Provided

Egan-Jones cited the obvious in their American sovereign debt downgrade: debt greater than GDP, a weaker U.S. Dollar resulting from indefinite quantitative easing, an ongoing zero interest rate environment, unsustainable budget deficits.

With the Federal Reserve's QE Infinity, Congress can continue deficit spending, the oldest sovereign trick in the book. No need to balance the budget until the Day of Reckoning. This props up the financial system, prices will go higher, commodity prices will increase, other hard asset prices will rise, and the markets will continue well aloft. The ridiculous and criminal idea that the Fed is creating  jobs with printing money will ultimately be shown a sham. The global corporations want the cheap labor of Asia and South America, not the higher cost American labor. The USA's future is 'post-industrial' which means most jobs will be low-paying service jobs. A poor nation is easier to control per totalitarian doctrine. A middle class is pesky and has higher expectations such as a future.

Through federal government accounting chicanery, the July 2012 interest expense was a negative -$52 billion and this reduced the annualized interest expense and related annualized effective interest rate paid. No matter, the financial truth and facts will ultimately prevail, they always do, and the FY 2012 interest expense is actually an all-time high no matter what the proven liars in Washington say.



The graphic story of the pillaging of a nation.



The real reason the Federal Reserve's zero interest rate environment is indefinite. America will financially collapse if interest rates spike when the debt is $16+ trillion. That's why the Federal Reserve has to buy a significant portion off the U.S. Treasury debt - to keep rates low and fund the ongoing deficits. There's not enough lenders, buyers of U.S. Treasury bills, notes, and bonds, to keep the Ponzi scheme afloat.



Charts consist of the latest data available from the Bureau of Economic Analysis (GDP at 6-30-12), U.S. Treasury (Public Debt at 9-16-12), and U.S. Census Bureau (Population at 9-16-12):
Public Debt $16.05 trillion GDP $15.61 trillion
Population 314.39 million
Annualized Interest Expense $374.29 billion (the books are cooked)
Effective Interest Rate 2.53% (actually higher than 3.0%)

USA Sovereign Debt Now Exceeds GDP: Greetings From Big Brother

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Government Lending Drives Consumer Credit Higher!

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Federal Reserve: Monthly Consumer Credit

USA Consumer Credit Holders/Lenders (Not Seasonally Adjusted)



USA Private and Public Sector Lending (Not Seasonally Adjusted)

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USA Consumer Credit at Post-Recession High

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Federal Reserve: Monthly Consumer Credit

USA Total Consumer Credit (Not Seasonally Adjusted)



USA Total Revolving Credit (Not Seasonally Adjusted)



USA Total NonRevolving Credit (Not Seasonally Adjusted)

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Government Lending Drives Consumer Credit Higher!

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Federal Reserve: Monthly Consumer Credit

USA Consumer Credit Holders/Lenders (Not Seasonally Adjusted)



USA Private and Public Sector Lending (Not Seasonally Adjusted)

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USA Consumer Credit Increases to $2.525 Trillion

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Federal Reserve: Monthly Consumer Credit

USA Total Consumer Credit (Not Seasonally Adjusted)



USA Total Revolving Credit (Not Seasonally Adjusted)



USA Total NonRevolving Credit (Not Seasonally Adjusted)

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Bank Loan Underwriting Standards Largely Unchanged

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Office  of the Comptroller of the Currency

OCC News Release: OCC Survey Showed Banks' Underwriting Standards Largely Unchanged

WASHINGTON — The Office of the Comptroller of the Currency’s 18th Annual Survey of Credit Underwriting Practices, released today, shows that underwriting standards remained largely unchanged from last year, although some easing was noted in select commercial and retail products.

Banks continued to react to changing economic conditions, competition, and ongoing portfolio risk. Examiners reported banks that eased standards generally did so in response to changes in economic outlook, competitive environment, and the bank’s risk appetite including a desire for growth. Large banks, as a group, reported the highest share of eased underwriting standards. Loan portfolios that experienced the most underwriting easing included indirect consumer, credit cards, large corporate, asset-based lending, and leveraged loans. Loan portfolios that experienced the most underwriting tightening included high loan-to-value home equity, international, construction, and residential real estate loans.

“This year’s survey showed the continued normal progression toward stable or easing underwriting standards as the economic environment stabilizes,” said John Lyons, Senior Deputy Comptroller and Chief National Bank Examiner. He went on to indicate “examiners will be focusing on underwriting standards as banks ease standards to improve margins and compete for limited good loans.”

Banks should ensure appropriate attention to underwriting, loan structures, and loan administration as competition and the anxiety for earnings can lead to heightened risk. This is especially notable for loan products that have already seen easing such as leveraged lending, asset-based lending, indirect consumer lending, and credit cards.

The survey is a compilation of examiner observations and assessments of credit underwriting standards. The 2012 survey included 87 of the largest national banks and federal savings associations and covers the 12-month period ending February 29, 2012. The aggregate total of loans was $4.6 trillion as of December 31, 2011, which represents approximately 91 percent of total loans in the national bank and federal savings association system.

Survey of Credit Underwriting Practices

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Government Lending Drives Consumer Credit Higher

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USA Consumer Credit Holders/Lenders (Not Seasonally Adjusted)



USA Private Sector Lending (Not Seasonally Adjusted)



USA Public Sector Lending (Not Seasonally Adjusted)

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USA Consumer Credit Increases to $2.5 Trillion

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USA Total Consumer Credit (Not Seasonally Adjusted)



USA Total Revolving Credit (Not Seasonally Adjusted)



USA Total NonRevolving Credit (Not Seasonally Adjusted)

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USA Consumer Credit Increases, Fueled by the Government and Sallie Mae

Federal Reserve Board: Consumer Credit (Not Seasonally Adjusted)


USA Consumer Credit (Not Seasonally Adjusted) Total consumer credit slightly increased +0.17% and +$4.39 billion in March 2012 from the prior month and increased +5.01% and +$120.26 billion from the prior year March 2011.

However, this is not the story, exclude public sector credit, the U.S. Federal Government and Sallie Mae, and total consumer credit slightly decreased -0.12% from the prior month and slightly increased +0.74% from the prior year. The government has been supporting the total consumer credit increase via student loans, since September 2010. Private sector lending by commercial banks, finance companies, and credit unions has been decreasing, after  peaking in December 2011.

USA Consumer Credit Holders (Not Seasonally Adjusted) As can be seen from the chart below, any and all significant credit growth has been fueled by the U.S. Government and Sallie Mae. Commercial Banks (-0.15%), Finance Companies (-0.24%), Credit Unions (-0.34%), and NonFinancial Business (-0.27%) lending decreased from the prior month. U.S. Federal Government & Sallie Mae (+1.53%), Securitized Pools (+1.05%), and Savings Institutions (+0.09%) increased lending during the month.








USA Consumer Credit Components (Not Seasonally Adjusted) Below are the monthly charts for total consumer credit and the two components, revolving credit and nonrevolving credit. A significant portion of the increase in nonrevolving credit can be attributed to student loans by the government.








[Editor's Note] Effective with the September 2010 data, the law changed and the U.S. federal government became the primary lender to students. Previously, the U.S. federal government had been the guarantor of student loans and private lenders provided the credit.

USA Consumer Credit Rises (Charts) *Federal Government & Sallie Mae reason for increase*

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Federal Reserve Statistical Release: Consumer Credit

USA Consumer Credit (Preliminary, Not Seasonally Adjusted) Total consumer credit increased +0.52% and +$12.74 billion to $2.467 trillion in September 2011 from August 2011. This is a 20-month high. Total revolving credit decreased -0.22% and -$1.76 billion to $791.06 billion, a 2-month low. Total nonrevolving credit increased +0.87% and +$14.498 billion to $1.67 billion, an all-time high now that student loans are included. [Revolving Credit + NonRevolving Credit = Total Consumer Credit]

[Editor's Note] Effective with the September 2010 data, the law changed and the U.S. federal government is the primary lender to students. Previously, the U.S. federal government had been the guarantor of student loans and private lenders provided the credit. A significant increase in NonRevolving Credit can be attributed to increased student loans by the government.

USA Consumer Credit Holders (Not Seasonally Adjusted) The U.S. Federal Government & Sallie Mae, Securitized Pools, and Savings Institutions increased lending for September 2011 at +3.65%, +2.42%, and +0.13%, respectively. Lending decreased for the other credit holders: Credit Unions -0.69%, NonFinancial Business -0.46%, Finance Companies -0.35%, and Commercial Banks -0.08%.

Commentary In September 2011, excluding the U.S. Federal Government & Sallie Mae, total consumer credit decreased -0.08% and -$1.55 billion from the prior month August 2011 and decreased -1.77% and -$37.71 billion from the prior year September 2010. Public sector credit, the U.S. Federal Government and Sallie Mae, has been supporting a significant portion, and in some cases all, of the consumer credit increase via mostly student loans. Private sector credit remains at low levels and is not significantly increasing.

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