There are a number of Banks in the states which are going Bankrupt. One of the largest banks in the world would possibly be nationalized by the Government. These trends are not only disturbing but also are not making any sense. Looking at what the banks do it is surprising how they rake up profits and also makeup some of the world's largest business. Banks reward their leadership for failure. One CEO after another is given millions of dollars in bonuses despite poor company performance. Unbelievably $2.5 Billion was given as Bonus to the CEO of Lehman Brothers.5 BILLION in bonuses after failure of the bank. In the name of "stimulus" our federal government is handing billions to these same companies, sadly. Tax money for the companies who have accepted government handouts would not be going towards the huge salaries of the CEO's, as promised by the President Obama. Banks figuratively kick people financially why they are down. If a person is a single day late on a payment it is common practice for credit card companies to dramatically increase the rates on the credit cards. If a customer is 30 days late (which gets reflected on credit) then all the person's credit cards typically "jack up" their rates. Therefore a person who has lost a job or suffered financially leading to a late payment suddenly sees huge increase on the minimums due each month, making his hardship even greater. As a result such people find themselves stopping paying their bills, entering into debt settlement programs or going bankrupt. In virtually all cases the bank loses money due to the client's default. Banks are cooperating less with debt settlement companies. Rather than wanting to work with a debt settlement company and get a settlement as high as 50% of the balance due, many creditors choose rather to sell the debts to collection agency for less than 10 cents on the dollar. Debt Settlement companies do keep quiet until the debt is transferred to collection agencies as they are more favorable to settlement programs. Meanwhile bank losses increase and the time required for them to get any funds also dramatically less. Citi Bank which is a debt settlement unfriendly company is unsurprisingly headed towards company failure on a whole. Irrational bank action is certainly hurting the banks bottom line. Our economic system is potentially endangered by it. To cover the cost of bailout everyday person is facing job losses, tax increases and drop in retirement funds and stock portfolios. Meanwhile, people are busy bailing themselves out using debt settlement programs, and many others are filing bankruptcy. Hopefully for the benefit of all Americans some changes have to happen in our financial institutions
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