American Express Co. and Capital One... fell the most in more than eight month (CARD Act )

[ProSense]

Jan. 22 (Bloomberg) -- American Express Co. and Capital One Financial Corp. fell the most in more than eight months as analysts at FBR Capital Markets reduced earnings estimates, citing shrinking margins and new U.S. credit-card regulations.

AmEx dropped 8.5 percent, the worst performance today in the Dow Jones Industrial Average, and Capital One plunged 12 percent. FBR cited Capital One’s shrinking balance sheet, higher marketing costs and “disappointing” revenue guidance and cut estimates for 2010 income to $2.25 a share from $2.50. The 2011 estimate was cut to $4.60 from $4.95. FBR reduced its 2010 estimate for AmEx to $3.24 a share from $3.35.

Both lenders said yesterday that fourth-quarter results improved, with AmEx’s income more than doubling and Capital One swinging to a profit. Starting next month, they’ll have to deal with new provisions of the Credit Card Accountability Responsibility and Disclosure Act.

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[lunatica]

1. What does this mean?

That more and more people are defaulting because they have to choose between their mortgage or their credit card payments?

[ProSense]

2. A company's stock performance

means people are defaulting on their credit card payments?

[lunatica]

3. I asked you what this means

[ProSense]

4. It means

that the companies are anticipating a drop in income, resulting from compliance with the new regulations.

[asdjrocky]

5. Yeah, the financial industry is shaking in their boots about President Obama.

What a joke.

[ProSense]

6. "What a joke."

Yeah, I can picture the folks at AMEX laughing at the loss.

[asdjrocky]

7. Smoke and mirrors.

Do you think strippers like you?

[ProSense]

8. Utter nonsense. n/t

[Robb]

9. Apparently there's something else in most peoples' wallets. nt