Credit Card Fallout Next Banking Plague
Is there another Credit Crunch coming for the already battle weary Banks?
They need another Credit crisis like the plague.
The Banks are worried. As well they should be if the data on the apparently coming Credit Cards crunch will come true. Imagine if they have a full 20% default on all balances.
Imagine suddenly having to:
* Yank 20% of your division business out.
* Then add the administrative costs.
*Add the inevitable legal costs.
*Add the probable expenses of trying to collect on the defaults.
* Then add to the misery, the spectre of layoffs of their own staff.
[Experts predict that millions of Americans will not be able to pay off their debts, leaving a gaping hole at ailing banks still trying to recover from the housing bust.
The bank stress test results last week, suggested that the nation’s 19 biggest banks could expect nearly $82.4 billion in credit card losses by the end of 2010 under what federal regulators called an adverse economic situation.] New York Times read more…
Tags: Credit Card Fallout
Posted in Bank Crisis, Credit Cards | No Comments »
