Pass the (financial) lube, please

Collarspace Discussion Forums

Home Login Search

Pass the (financial) lube, please

View related threads: (in this forum | in all forums)

Logged in as: Guest

All Forums >> [Casual Banter] >> Off the Grid >> Pass the (financial) lube, please

Page: [1]

Message

<< Older Topic Newer Topic >>

Pass the (financial) lube, please - 11/13/2008 11:24:49 AM

hizgeorgiapeach

Posts: 1672
Status: offline

Seems the government wasn't content to screw taxpaying consumers with the $700Billion + bailout. Now that the banks are feeling just the slightest bit less stressed, and want to pass the help along in some manner (much to much surprise) the feds tell 'em "No."

http://news.yahoo.com/s/ap/20081113/ap_on_bi_ge/meltdown_credit_cards

Seems the feds have completely rejected a plan that was presented by an alliance of banks and consumer advocacy groups - a rare type of alliance, to say the least - to offer debt forgiveness for those who don't qualify for other sorts of help in getting credit card debt under control. According to the feds, that would simply be "postponing admission of losses suffered by the bank" or something to that effect.

_____________________________

Rhi
Light travels faster than sound, which is why some people appear bright until you hear them speak.
Essential Scentsations

Profile

Post #: 1

RE: Pass the (financial) lube, please - 11/13/2008 1:11:45 PM

SilverMark

Posts: 3457
Joined: 5/9/2007
Status: offline

From reading the article it seems the banks just don't wish to stand the loss as it occurs.
I am sure the consumer advocacy groups are in it for different reasons. I have a feeling that by passing the debt along the banks wouldn't show real losses and be able to legally mis-represent earnings. If the banks wanted to give the write downs to the consumers, a "knock down" loan where the interest is forgiven and no loger accrued I am sure they could. Altruistic as it may sound I doubt the banks motives. All supposition on my part but, I think I might be correct. I am not that well versed in banking laws.

< Message edited by SilverMark -- 11/13/2008 1:14:38 PM >

(in reply to hizgeorgiapeach)

Profile

Post #: 2