45% of the credit card portfolio at wamu is subprime

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45% of the credit card portfolio at wamu is subprime

Postby kiboko » Tue Oct 14, 2008 12:41 am

Lou Dobbs said that 45% of Wamu's credit card portfolio is for subprime customers. Wow I can't imagine why they failed when nearly half of the people they gave cards to had sub prime credit!!!

Why are we bailing these RECKLESS CROOKS out that did it to themselves. That would be like if you or I loaned half our money to people with horrible credit and then we wondered why we didn't get it all paid back. WOULD THIS BE A SURPRISE? Anyone with HALF A BRAIN knows there is no benefit in lending money to people that don't have the means or the motive to pay it back.

Then I hear Wamu owned Providian the biggest subprime credit card issuer on the face of the earth. I'm all for giving credit to people with bad credit but YOU SHOULDN'T GIVE THEM MUCH CREDIT to start with and make them establish a history before you start handing out big credit lines.

Screw Wamu I want my $700 billion back!!!!

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Postby Cucumber » Tue Oct 14, 2008 3:42 am

um WaMu didn't really cost us anything (not yet at least) because all the feds did was broker the sale of it. They didn't have to bail out the bank accounts.

But I guess now that we are buying all "distressed" financial assets it will finally cost us. :mad:
Stop talking crap about him!

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Postby 1bootcamp » Tue Oct 14, 2008 11:43 am

Hey I remember hearing something about their mortgages being around a third sub-prime too.

They should have seen this train wreck coming.

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Postby magyar1045 » Tue Oct 14, 2008 8:19 pm

JP Morgan Chase recently bought/merged with Wamu. I'm certain that Chase, one of the world's biggest predatory creditors, will cut Wamu cardholders' limits left and right and resort to all forms of intimidation to get the balances and then close those accounts.

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Postby Mogul of Pineapples » Wed Oct 15, 2008 1:23 am

I actually agree with Chase cutting the limits on the sub-prime credit cards they acquired from WaMu - no reason to give huge credit limits to someone that currently has bad credit. I doubt they would want to close the accounts out completely though because I bet they're good moneymakers for them. They probably just want to lessen the risk pool of total defaults.
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Postby KC95 » Wed Oct 15, 2008 9:35 pm

i hear you all but credit cards are a tiny part of the problem. a person with bad credit probably only has no more than 10 or 20k in credit available on cards but they have 300k or more on their mortgage and another 35k on their gas guzzling suv payment.

yea we need to be conservative with credit card but the real gut of it is all these other big loans that are not flexible in payment terms and are for large amounts!

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Postby envy » Thu Oct 16, 2008 2:08 am

Hey I heard that 30% of all credit card debt in America is sub prime too. They said that most of the debt is packaged up and sold off so the companies themselves don't have too much exposure to it all. I don't know if that's true or not though.

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