@longtimelurker wrote:
@HiLine wrote:
@longtimelurker wrote:Nearly all of the "prime" (whatever that means) have been heavily fined by various regulators so Discover hardly deserves downgrading.
Recent cases include HSBC paying $4.2B to US and UK regulators for money laundering and mis-selling products in the UK, and Barclays $451M fine for Libor manipulation and $453M for energy market rigging (this one is under appeal). Amex got a small fine as recently as Jul 22 for breaking an embargo with Cuba, and $112M in Oct 2012 for breaking large numbers of consumer protection laws.
Going back far enough, you'd find that every single credit issuer that's been around for 20 years or more has been involved in scandalous lawsuits that cost them in the 9 figures. Honestly, I don't see how a lawsuit can suddenly turn a lender from prime (whatever that means) to something else. Losing a lawsuit means they probably did something wrong, while prime vs subprime is a matter of business model.
Yes, that's what was meant by my first sentence...
Yes, and I agreed with you ...
