Target (TGT) To Sell Credit Card Debt To JP Morgan (JPM)
In what could be a brilliant move if the recession and drop in retail sales worsen, Target (TGT) has agreed tot sell $3.6 billion of its credit card loan portfolio to JP Morgan (JPM). According to Bloomberg, the entire value…
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In what could be a brilliant move if the recession and drop in retail sales worsen, Target (TGT) has agreed tot sell $3.6 billion of its credit card loan portfolio to JP Morgan (JPM). According to Bloomberg, the entire value of the Target consumer debt pool is $8.2 billion.
Target will probably use the capital for buying back shares and supporting expansion of new stores. The second of those programs would seem like a poor idea under current economic conditions.
Bloomberg writes "A sale will also help protect it as consumer credit declines and the U.S. economy moves closer to a recession."
Investors in Target will take almost any bone the company will throw them The retailer’s shares are off 8% during the last six months. Stock in rival Wal-Mart (WMT) is up 30%.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.