If a bank/credit card company tanks...

[Nicketas]

x

xxxx

 

[Eponym_mi]

They'll call for immediate payment, or if you're deemed a good credit risk and the terms are acceptable, the debt might be purchased by another company. Another possiblity would be that another company would buy the debt at a discount.

 

[Nicketas]

xxxx

 

[diesirae]

What if immediate payment cannot be made?

What do you mean? This is too vague to answer clearly.

 

[RonPaul_SantaMonica]

.... does that mean any debts owed to them are vaporized?

What happens to unpaid debt when a company tanks?

The bank will be bought over by another bank. Like CFC was bought by BOA. They will not let any bank loans fall through the hoops as that will cause an even larger financial crisis. In the worst case scenario of many bank defaults the FED will step in big time.

 

[slantedview]

They will not let any bank loans fall through the hoops as that will cause an even larger financial crisis. In the worst case scenario of many bank defaults the FED will step in big time.

Exactly. They won't let a big bank fail, which if you think about it, is absolutely horrible. If a bank knows they will be bailed out, what incentive do they have to follow good banking practices and not be wreckless with their lending? Their is no incentive.

A bailout always comes down to either taxpayers paying for it (via debt of course, since we're broke) or by the Fed printing money to cover the bailout.

 

[Carole]

Exactly! Always it will come back on the taxpayers. And no one ever complains. The sheeple just stand there and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it and take it .....

BCCI, Enron. Lots of people (not the big guys-but the little guys) lost their investments, retirements, plus the fact they and we are still paying for all that mess. Every time it happens, one or two CEOs or underlings go to gentlemen jail for a couple of months and Americans pay the costs of all these criminal deals-all the lies, stealing, cheating. Lawyers make money, other people make money, but Americans pay for it, even though we were not in any way connected.

Those who worked for them pay three times: Money they invested, money they lost, then taxes.

So why is there never any blowback for this?