UK Delinquencies Drag Down Capital One

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00027732-uk-delinquencies-drag-down-capital-one/

Capital One Financial Corp. saw it shares fall Friday after it announced lower-than-expected earnings on Thursday. The company blamed British credit losses on missing earnings forecasts.

Capital One’s CEO, Richard Fairbank, said in the earnings release, “Our businesses continued to post strong results in terms of loan growth and profitability in the second quarter, and credit performed well in all of our businesses with exception of the UK, which continued to operate in a challenging credit environment.?

Fairbank told Reuters that there had been a ?stunning rise in insolvencies in the UK.?

Analysts fear that the trouble in Britain may be a sign of things to come in the U.S.