1. This is a good business?
- Author
-
Trachtenberg, Jeffrey A. and Neal, Roger
- Subjects
CREDIT cards ,SAVINGS ,STOCK prices ,INVESTORS ,CREDIT card fees ,EARNINGS per share - Abstract
This article presents information on the credit card business of the company Home Federal Savings & Loan in San Diego, California. The thrift will write off some $30 million in losses from credit cards in the third quarter, trimming earnings by 90% and putting a cloud over one of the few savings and loans that have so far managed to remain unscathed by the industry's current woes. Flush with capital from a 1983 stock offering, the thrift had moved into everything from automobile financing to the credit card business, and share prices had climbed to an all-time high of 27. But when news of the company's credit card fiasco broke in August, investors grew scared and started selling, driving the price down to its current level of just under 19.
- Published
- 1985