These 4 Big US Credit Card Corps have flat out thrived, not just in earnings growth, but also in stock price appreciation, since the beginning of the Obama Administration.
The average stock price increase of these 4 Big Credit Card Corps is an incredible 283% from January 16, 2009 through last Friday, November 9, 2012.
And the amazing thing is that all 4 of them have stock price increases above 200% during the Obama Administration.
The magnitude of this 283% average stock price increase is particularly alarming when viewed in light of an S&P 500 Index increase of a much lower 62% over this same time frame.
So, the stockholders and the top executives of these 4 Big US Credit Card Corps have clearly benefited immensely in the past just short of 4 years. But who did they receive this largesse from? Just who ended up getting their wealth transferred to these 4 Big US Credit Card Corp beneficiaries?
Well, clearly already financially-strapped US citizens and US businesses.....and also the US economy.
So what can be done here?
A couple things that the new Consumer Financial Protection Bureau can do.
First, they can take a closer look at some of the interest rates charged by Credit Card Corps. When Big Financial Corps, which caused the financial meltdown, can borrow from the US Government at an interest rate of close to nothing, there is no way that Credit Card Corps should be allowed to charge such incredibly exorbitant interest rates.
Second, they can take a closer look at the late fees charged by Credit Card Corps. Many of these late fees are incredibly exorbitant.
Third, the discount fees charged to US citizens and to US businesses are unreasonable in many cases.
And fourth, there have been improvements made here in financial disclosures, but there are still many credit card customers who really don't understand the financial burden they are faced with by extensively using credit card debt. And the way Credit Card Corps are trying to entice you to just pay a minimum amount, so that they can charge exorbitant interest on a much larger balance, is flat out wrong, and should in all fairness be stopped.
Below here are the stock prices of these 4 Big US Credit Card Corps at the beginning of the Obama Administration, and also at last Friday's date.
| Stock | Stock | |||
| State | Price | Price | % | |
| HQs | 11-09-12 | 1-16-09 | Increase | |
| Credit Card Corps | ||||
| Discover Financial Services | IL | $41.08 | $7.60 | 441% |
| MasterCard | NY | $464.66 | $128.22 | 262% |
| American Express | NY | $55.83 | $17.01 | 228% |
| Visa | CA | $142.93 | $47.41 | 201% |
| Average Increase: All 4 Credit Card Corps | 283% | |||
| S&P 500 Index | 1379.85 | 850.12 | 62% |
