Credit Card Lenders See Share Prices Drop

The rise in credit card defaults is beginning to affect the price of shares of credit card companies. After Capitol One, a major lender, predicted another large loss due to credit default in 2008, shares fell by 32 cents according to CNN.Money.

Shares of American Express and Discover Financial Services also fell, American Express losing 30 cents to drop to $48.79.

CIBC World Markets analyst Meredith Whitney said that up until now consumers have prioritized credit card payments, and the loss in the credit card sector is new to investors.