Last week’s announcement was terse and to-the-point. Advanta’s Board of Directors, expecting a continuation of the recession as well as the further erosion of the company’s capital, approved a plan to “dramatically limit the Company’s credit loss exposure and maximize its capital and its liquidity measures.” These measures include the following:
The Company’s securitization trust will go into early amortization based on May’s performance. Early amortization will officially be determined on June 10.
Since the securitizations will not be permitted to fund new receivables after June 10, the Company will shut down all credit card accounts to future use at that time. Neither Advanta Bank Corp. nor any other Advanta-related entity will fund activity on its balance sheet from the accounts. Therefore, the Company will not take any off-balance sheet receivables onto its balance sheet. Shutting down the accounts will not...
By Charles M Cooper · May 18 2009
small business, credit cards, recession, advanta
Government and Economy
Geithner: Economy Stabilizing, Pain Ahead
Treasury Secretary Timothy Geithner said on Monday the U.S. economy was beginning to stabilize, but cautioned that consumers will still feel the pain of the current recession. Reuters.com
Post-Recession America: A Vastly Different EconomyWith the US economy beginning to show some early signs of stabilization, people are wondering what the “new normal” economy is really going to look like? Here are some thoughts. MSNBC.com
Management and Financial Issues
By Charles M Cooper · May 18 2009
small business brief, marketing, small business, economy
