JP Morgan is attacking consumers in an attempt to show its disdain for the recently enacted credit card bill of rights and Federal Reserve requirements for credit cards. Bloomberg recently announced that JP Morgan is raising the mandatory minimum payment amount for cash strapped consumers to 5% of the balance each month until the card is repaid. The previous amount was 2% of the outstanding balance. JP Morgan has a credit card portfolio of 159 million cards which was increased dramatically with the merger with Washington Mutual (and Wamu's previous merger with Providian financial). JP Morgan's move will place seriously cash strapped consumers into an even more precipitous position and will likely involve backlash from consumers. This move will also likely put even more consumers into default and I don't see why the bank is doing this except for it's own political pandering. I addition to the increased monthly payment amounts the bank is also increasing balance transfer fees to 5% of the transfer from 3% currently. The bank has discolosed that the reason for these increases in fees is due to "...new federal regulations..."

I hope this evil act against its customers backfires and that the amount of losses felt by the company will result in its complete failure. This could also be an accounting trick to help it survive its huge portfolio of loss generating derivatives contracts the bank still holds on its books.

sources:

http://www.bloomberg.com/apps/news?pid=20601087&sid=akF_dPsQtMqQ

http://www.moneyandmarkets.com/jpmorgan-chase-goldman-sachs-citibank-wells-fargo-and-more-than-1800-other-institutions-believed-to-be-at-risk-of-failure-33058