1. Déjà Vu

    Lenders Get Back Into Subprime Credit

    Image #: 8594238    The entrance to a Capital One Bank is seen in New York  August 17, 2009. Capital One Financial Corp's U.S. credit-card defaults and delinquencies rose in July, sending shares down 4.7 percent in premarket trading, as more Americans lost jobs and struggled to pay their debts.  REUTERS/Shannon Stapleton /Landov

    Shannon Stapleton, Reuters / Landov

    First the banks won’t lend, now they’re back to lending to risky borrowers. As banks look to make up for fee income barred by new regulations, they’ve gone back to offering loans and credit cards to borrowers with bad credit. Credit-card companies gave out 1.1 million new cards to borrowers with bad credit in December, up 12.3 percent from the month before. Capital One is especially aggressive, wooing customers just out of bankruptcy. Lenders are also giving more auto loans to people with bad credit. Analysts say the banks are attracted to the high-interest rates borrowers with damaged credit pay.

    Read it at The New York Times