An interesting article in American Banker just caught my eye. JP Morgan Chase, one of the bigggest of the big guys, has quietly shut down most of its consumer collection activities. As recently as mid-2011 this division was bringing in hundreds of millions of dollars a month in revenue for JPMC. Chase is mum about why it has stopped collection activities, but speculation is that it has something to do with similar problems faced by Chase, B of A and others in foreclosures: Lack of documentation for the debts.
It looks like the bank that was too big to fail is now too big to manage.
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