Big Wall Street firms aren’t the only ones getting hammered by the widening credit crisis. McLean-based Capital One Financial Corp. took a hit yesterday, as the fallout from sub prime mortgages continues to spread.

The company’s stock sunk to a new 52-week low — $38.35 — following reports that full-year earnings for the credit card giant will not meet projections. Capital One expects earnings of $3.97 per share for 2007, rather than $5. The problem, it said, was higher loan losses and costs for legal reserves.

Expect to hear a lot more of the D-word, as in delinquent. In its company statement, Capital One said it plans to set aside $1.9 billion for bad loans in the fourth quarter, including $1.3 billion in uncollectible loan losses. In 2008, it expects charge-offs of $5.9 billion.

The company’s stock opened this morning at $40.42. By mid-day, it stood at $42.86, slightly below yesterday’s close of $42.92 which represented a drop of 43 cents from the previous day. The company’s 52-week high is $83.84, a figure that hasn’t been seen in months. 

Capital One also noted “continued deterioration” in about $700 million worth of home equity lines of credit originated by Greenpoint Mortgage. Capital One acquired Greenpoint in 2006 as part of a deal to buy New-York based North Fork Bancorp Inc. and closed the mortgage unit in August.

If numbers tell the tale, there’s no question more consumers are struggling to pay bills. One can help but worry: where’s all this going to end? 

The sun was just creeping over the horizon Thursday when a group of executives got down to business on the 21st floor of a Richmond office building.
The Executive Exchange, a business networking group, meets for breakfast every week at the Bull & Bear Club atop the James Center complex. At 7 a.m., the windows surrounding the dining room offered a dazzling view of rapids of the James River below. But the dozen men seated around the table were focused on referrals, not the view.
At 7:15 a.m. sharp, they passed their business cards and began a series of one-minute speeches describing their businesses. The group included representatives from an insurance agency, an advertising firm, a commercial real estate company, a financial consulting group and a CPA firm.
Later, one member of the group, the insurance agent, gave a longer talk about risk management and described the target customer he is seeking. The other members around the table took notes.
In networking groups like this, the members serve as eyes and ears for each other. They watch for opportunities where the needs of someone they know match the services of a club member. Sometimes they work together to offer a package of services to a single client.
In a time of instant, global communication, groups like the Executive Exchange demonstrate the continued value of face-to face encounters and the power of the personal touch. The Richmond group, in fact, bans the use of cell phones during meetings. The president was fined Thursday when his went off by accident.