irony

[juggalo9er]

does anyone else see the irony in "super chase" bank almost completely refusing to give credit cards and home loans to those who have filed bankruptcy when chase obviously recieved more than their fair share of the bailout money?

[myjourney]

I really don't see it as irony.

Due to government regulation (bailout money)  all banks have to have so much capital in reserves

And must pass the financial stress test from the government regularly.

IIRC once or twice a year which they are graded on A,B,C etc etc 

Banks took big hits yes and of course a case can be made they were also loan sharking at the time.

Housing prices were selling for 3-4 times what they were worth and the big banks were happy to finance the deal.

No problem sign here and the over inflated home is yours and then the real estate market went from boom to bust.

Why because they approved any and everyone.

So as a business model now they have chosen to selectively critic their lending practices and as a result they're seeing less risk in their portfolio and stockholders are happy.

Stockholders carry a lot of weight when it comes to how a companies lending practices and requirements for lending goes.

They pressure board members for improvement and changes are either made or the board itself is changed. 

The old if you don't do it someone else will theory (fire/hire)

Chase stock price 2009 during the crash $19 a share about 2 years ago $29 a share this week $57 a share 

So a case can be made that the business model is working.

As a stockholder of BofA and Chase this is precisely what I want to see (growth)

After all you buy stocks to make money not lose it.

[llecs]

I don't have an issue with a refusal to loan to high-risk folks. That's a good thing, otherwise JP Morgan would have to borrow more to cover those additional losses. I also don't have an issue that the interest returned $1.7bil back to us for that $25bil loan (just so the govt can spend more :/ ). However, I do take issue that the government has lent to hundreds of banks, CUs, and other lenders resulting in a net loss of tens of billions. The top offenders are Fannie/Freddie and that's from issuing high-risk loans to begin with (with a mandate from Congress years ago). Just those two alone resulted in a loss of over $41bil. Others ahead of Chase are BofA, AIG, Citi, and GM with losses for GM at $15bil. IMO, let them fail.

[juggalo9er]

The thread was intended to be a joke, for the record someone who has filed bankruptcy is not always a high risk as the below prime rate on my home loan would lead anyone to believe. This thread was meant to be comical and by no means serious and I am really in disbelief that anyone would attempt to defend a financial institution in general.

[Revelate]

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@juggalo9er wrote:

The thread was intended to be a joke, for the record someone who has filed bankruptcy is not always a high risk as the below prime rate on my home loan would lead anyone to believe. This thread was meant to be comical and by no means serious and I am really in disbelief that anyone would attempt to defend a financial institution in general.

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Humor can be difficult to convey when stated deadpan on an Internet forum.  FWIW I had a similar read as some others apparently.

No harm no foul in this instance in my estimation.  I think you'll find though that the majority of users do not consider financial insitutions to be the Evil Empire incarnate, for my own stance having worked at a few of them, it's just business albeit one that isn't necessarily consumer-friendly.

[Uborrow-Upay]

All I know is, I'm really happy to have picked up 20,000 shares of Citi when it went down to $1/share...

How's that for irony?

Uborrow-Upay

[juggalo9er]

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@Uborrow-Upay wrote:

All I know is, I'm really happy to have picked up 20,000 shares of Citi when it went down to $1/share...

How's that for irony?

Uborrow-Upay

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@exactly as ironic as my purchase of ford @ 3.78 lol

[Startome]

Dang you two I'm jelly lol