With such a low premium of 4 percent to the prior day's close and the fact that there is a significant breakup fee of 225 million, it doesn't give us much comfort that investors are being protected, ... There has been a huge turnaround among the credit card issuers over the past three years, and with MBNA being acquired, there's some scarcity value for Providian. But their shareholders are not getting it.
Quotes about providian (4 Quotes)
Merrick Bank had the highest default rate with 35 percent, followed by Citibank and Providian, both with 29.99 percent. When a customer is actually at the point of completely defaulting, there may have been some signs before that time that the company could've picked up on and dealt with in a more humane fashion than what most credit card companies seem to be doing at this point, ... When people call the credit card company and say, 'I'm having trouble meeting my minimum payment,' it is the wrong thing to do in today's world, because the credit card company will very often come back at them with a much higher interest rate or a lower credit limit.
As an outside director of Providian, he only became aware of the problems when the regulators began to make inquiries, ... And as soon as he was aware of the issues, he personally took the lead in making the company do the right thing.
Our favorites here would be Capital One and Providian Financial, ... Both companies have gained market share consistently. There's a lot of anxiety in the world about credit quality because of the economic slowdown. But these companies will also benefit from lower funding costs because of the Fed moves this year.