Think those overpaid fat cats on Wall Street have learned anything? at FinGad.com

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Think those overpaid fat cats on Wall Street have learned anything?

Categorie: Recreation
Submitted 9 months ago by

Ziad , President & CEO at Blackhawk Partners, Inc

Think the estimated subprime debt load carried by the big international banks is big at $1 trillion?How about this: Americans now owe nearly as much — a record $915 billion — on their credit cards alone. And defaults and delinquencies in the credit card sector are piling up — which means big banks are on the hook, again. More sand in the gears for the global economy. Credit card companies wrote off 4.58 percent in payments between January and May, almost a third more than in the same period in 2006, according to Moody's Investors Service. As a result, lenders such as Citigroup, Bank of America, and American Express, among others already reeling from the subprime mortgage disaster, are being further weakened. Not to mention the staggering U.S. economy, which is so dependent on a vigorous consumer credit sector to keep it healthy. Seventy-two percent of the U.S. economy rides on consumption alone. Third quarter numbers for banks were the worst since 2001. First Citigroup took a 57 percent hit in earnings. The decline was attributed, in large part, to consumer-credit problems. Anticipating additional defaults, they stashed away $2.24 billion in loan-loss reserves. Other major banks also took a beating and are also preparing for the expected credit card delinquencies and defaults. American Express added 44 percent to its U.S. card division loss reserves. Bank of Am... More...

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