What are the measures Obama Govt should take to stop BK of banks.There was a report that alone in last two months 16 banks have filed for BK.Doesn't it sound really bad?
What are precautionary measure you suggest to avoid the future consequences of this bad financial system.
Whether credit repair is required on priority basis to banks as compared to Individuals.what's your say? :arrow:
Hi Ensurepune
Banks do not have a credit report nor it is essential for the banks to get a higher credit score to get money as deposit from us and so there is no question of credit repair for banks. Now since the credit card holders and other borrowers of the banks are not able to repay back the existing debt, the banks do not have money to pay back the depositors and so they have to file bankruptcy.
i do know that bank do not have the credit repair. i used that term in a sarcastic manner because banks would not have went BK if they had kept the norms very strict.
They should not have put their large proportion with volatile wall street.it is really due to mad rush of greed and vast marketing. :wink:
I do agree they do not have any credit report but they have some obligations towards the government. :arrow:
Hi Ensurepune
Banks have so long been liberal in offering credit to customers just by checking the credit score. If a consumer had an excellent credit score, he wouldn't face any difficulty in getting a new line of credit at an attractive rate of interest. But thing is that, since the past does not always reflect the future, the person who used to have an excellent credit score may default on the present debts due spending over and above the limit he is able to repay through his present income source. Most of the banks have realized this mistake and are now in a process of lowering the credit limit for existing customers.
since the past does not always reflect the future, the person who used to have an excellent credit score may default on the present debts
I agree with you carol on this topic that banks may lower the amount for the existing customer. but ..........
You have made a nice point which i have quoted above that person who was a millionaire in past and was not delinquent on his payments not necessarily continue with the same payments in coming future as due to current market situation.
Banks need to lower their norms as there won't be any takers for the loan if they don't do this. :arrow: :arrow:
We need to refer this question to god. Most of the things lies the loan repayments. It includes ethics and unhandled issues like decreased property rates, sudden drops in markets etc. Untill there is fear of the recession this has to continue. What government can do is to patch up the problem. Though there may be cuts in bank rates, the banks have now tightened the hands to offer new loans. The businesses are less encouraged for expansions and this resulted in cut in the business for small vendors. Therefore the loans could not be repayed and the cycle continues...... What Obama team should try is to boost the confidence and ask for segregation of loyal and disloyal debtors. Loyals should be encouraged and the disloyals to be slapped (Poor repayments do not reflect loyalty!!), besides those packages to improve upon the situation.