Banks run into ownership problems in collecting on credit card debt

Here’s a good video from the Tech Ticker guys showing us that the opaque nature of asset-backed securities is catching up with Wall Street again. This is now becoming a problem in the credit card industry. Just as with mortgages, as banks have moved to a originate to syndicate model of credit creation, who actually owns and can enforce payment on the credit card assets is unclear.

Take a look.

In the next recession, this could be a very big issue yet again.


Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.