Synchrony Says It Is Boosting Its Loan Loss Reserves

Shares of Synchrony Financial (SYF) - Get Report , the private-credit card issuer that was spun off from General Electric (GE) - Get Report in 2014, were trading down Tuesday. Synchrony says it expects to boost the reserves set aside for loan losses this quarter, despite what the company says have been 'historically low' loss rates this year. For more than 80 years, Synchrony was tethered to GE, with roots dating back to the Great Depression as a credit lender for customers of GE appliances. Over the years, the company has become the largest provider of private label credit cards. GE offloaded its remaining $21 billion position in Synchrony through a massive share swap last fall.

This article was written by a staff member of TheStreet.