Citi increasing credit card bad debt reserve

[leftyf]

www.footnoted.org

[B12]

Prince is the second one in only two weeks. O'Neal stepped down from Merrill Lynch last week.

I love the way Citi said it is not making any more comments until they "see" what the market does.

It's the largest financial group and they can't even forecast.

So, when someone gives you their opinion on when they think this will end, they are just blowing smoke.

[treehugger1]

LOL! I'm one of the points in their statistic! Citi does not like to work with folks in a bind. Neither does CRAP1.

We keep hearing about the mortgage crunch. But, what will folks really do when they have to make a decision between paying their cc's and paying their mortgage. Give me a break! They didn't see this coming? And, who were the folks offering all the "buy a house" for nothing upfront mortages?

I used to feel bad about not being able to pay my unsecured. The truth is, this is nothing compared to a bank holding papers on a $400K+ house with no market to recover their loans.

Now would be the time for Congress to step in and rewrite the bankruptcy laws to reduce the issue of unsecured debt included in a chapter 13. The corporations can't have it both ways (we want all of our secured debt repaid and all of our unsecured repaid.) Hmmm...., what will they do? Get stuck with billions of secured debt mortgages or get stuck with billions of unsecured credit card debt? I don't think they can have it both ways.

Will they lobby for criminal law prosecutions for unsecured debts? Hell, most states barely have the funds to keep 2nd degree assault criminals in "jail."

[leftyf]

I only have unsecureds, but I consider myself a casualty of the sub-prime crisis because I was given approval on way more capital than I could afford. I was able to sell before foreclosure but had to cash advance $18K to dump the "palace." I knew it and I consider myself responsible. I will pay my debt with bad credit for a number of years...the financial markets will pay by not getting their money back (or at least not ALL of their money back.) Hopefully they have me fully reserved.

[treehugger1]

Interesting. In a way, I guess I am also a "victim" (self-inflicted) of the sub-prime unsecured lenders.

[krielly]

I remember when my husband & I were getting ready to file. I felt SOOOOOOO guilty about my unsecured creditors, as our plan was not paying back 100%.
Well, our attorney told us to stop paying our unsecured as of our consultation. I should add that I had NEVER been late on a cc payment whatsoever, but as soon as I was late on that one payment to Citi - and not even 30 days, mind you......they took my 9.9% interest rate and jacked it up to over 20%. On a balance of about $22,000. I had been a customer in good standing for years and years, and they didn't even know we were getting ready to file. It's like they are just lurking........waiting for you to slip, then WHAM!!!!!!!!!!! Let me tell you, that went a long way towards making me feel better. Guilt went away (at least regarding Citi) pretty quickly after that!!!!!!!!!!!

[$$only4ever]

I remember when my husband & I were getting ready to file. I felt SOOOOOOO guilty about my unsecured creditors, as our plan was not paying back 100%.
Well, our attorney told us to stop paying our unsecured as of our consultation. I should add that I had NEVER been late on a cc payment whatsoever, but as soon as I was late on that one payment to Citi - and not even 30 days, mind you......they took my 9.9% interest rate and jacked it up to over 20%. On a balance of about $22,000. I had been a customer in good standing for years and years, and they didn't even know we were getting ready to file. It's like they are just lurking........waiting for you to slip, then WHAM!!!!!!!!!!! Let me tell you, that went a long way towards making me feel better. Guilt went away (at least regarding Citi) pretty quickly after that!!!!!!!!!!!

lol, same thing happened to me. What goes around, comes around. I guess that life is not good right now in the Citi.

[leftyf]

Somehow, I think the poor guy (the CEO formerly known as Prince) will get by. He got a decent severance.

[SinkingFast]

He got a decent severance.

aka,............ The "Golden" Parachute!!

[Run]

One more "Pig(s) at the Trough."