Financial Times FT.com

Banks rush to rescue of credit card trusts after record defaults

By Saskia Scholtes and Francesco Guerrera in New York

Published: June 25 2009 03:00 | Last updated: June 25 2009 03:00

Record credit card losses are pushing big US banks to come to the rescue of off-balance sheet vehicles they use to transform hundreds of billions of dollars in consumer loans into securities sold to investors.

The support provided by Citigroup, Bank of America, JPMorgan Chase and American Express underscores how the deteriorating health of the US consumer is opening new fronts in the financial crisis.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this