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Last week we noted that law and finance seemed relatively unscathed by the movement. It looks like we spoke to soon. After Harold Ford got the boot last week, Bank of America ($BAC) has now fired a Managing Director after allegations surfaced. And lawsuits are popping up against law firms.
There's growing weakness in the consumer lending space. All of the major banks have upped reserves.
This is interesting. Upshot: retailers ought to move away from the traditional seasonal approach if they want to compete with millennials insatiable year-round appetite for experiences. (PETITION NOTE: of course, it's too late for a number of retailers: we suspect this year's holiday season is make-or-break for a number of retailers, e.g., Nine West, Charlotte Russe, 99 Cents Only Stores). And marketers are focused on the 26 year-old millennial who apparently barely know how to put on pants in the morning (firewall). Good luck, though: JP Morgan Chase, Citigroup, and Bank of America just reported numbers and noted higher credit card-related losses in the last quarter. Each is increasing reserves against losses. Spending was up last month in auto, retail and restaurants, by the way. Query whether that spending will translate into future credit card losses and reserves.