Credit Card Stocks Mixed After Hearing

The party might be winding down for credit card providers, now that Congress has started the first of what is gearing up to be many hearings on practices within the industry.  This is best illustrated by share prices of credit card stock, which were pretty mixed Friday.

"I would like to put the credit card industry … on notice," said Sen. Christopher Dodd, D-Conn., the committee’s chairman and one of several Democrats seeking the party’s presidential nomination in 2008. "If you currently engage in any business practice that you would be ashamed to discuss before this committee, I would strongly encourage you to cease and desist that practice."

Congress would like to see more explicit details on how long debts will take to pay off using minimum payments, and to curb programs targeting college students.  After passing out in your first toilet as a college freshman, the onslaught of credit card offers are a close second in the rights of passage to thousands of 18-year-olds.

Capital One has its act together sooner than many other credit card companies, and is on its way to Head of the Class status as far as complying with what might be new congressional mandates.  It has simplified its disclosures and is working with the Federal Reserve to implement others, according to a Friday note quoted by the AP from Bear, Stearns & Co. Inc. analyst David Hochstim.

Mastercard fell 88 cents to $106.96, but American Express Co. dipped 28 cents to $57.50 and JP Morgan Chase & Co. slid 51 cents to $49.70, all on the NYSE.