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No charge: American Express cuts 7000 jobs as loan losses rise

AmEx to end 7,000 jobs as loan losses soar

The nation's biggest credit/debit/charge card companies are reporting higher losses. Their customers are getting squeezed from both sides: Lenders are jacking the rates they charge because money has gotten more expensive. But meanwhile,  more Americans are losing their jobs, business travel is plunging, and employers are tightening expense accounts.

  Big card lenders like Bank of America Corp. and JPMorgan Chase & Co. (whose card units are based on opposite sides of the Wilmington, Del. business district) have other businesses to fall back on (though they're also stressed). But for American Express Corp., which spends extra millions polishing its image with a fancy headquarters and first-class ad and marketing campaigns, cards and other corporate travel-and-entertainment services are all there is. So, after setting aside $1.4 billion for expected loan losses in the third quarter (vs. $900 million this time last year), the Manhattan-based card giant says it's ending 7,000 jobs, one-tenth of its worldwide total. Release here.

  If there's a bright side to this sad employment picture: In recessions, card companies typically hire more debt collectors.