Citigroup announced that it expects to lose $11 Billion this fiscal year, mainly due to loses from their sub-prime mortgages. Yep, those below prime teaser mortgages are really beginning to bite some of the finncial institutions in the ass. But , before you start laughing, guess who will be paying for it - you.
You see, there's a rule in finance...... Banks aren't allowed to lose money. And if they do, you just charge more to your existing customers to make up for it. If you have a credit card or mortgage with Citigroup, expect to see new fees and penalties on your accounts. Citigroup
also owns Travelers Insurance, where my car lost about $5k in value , but my premium only dropped $2 per month - coincidence? I think not.
My advice is to keep an eye out on your statements for any "Change in Account" messages, or to switch to a company that doesn't have any sub-prime loans out there.
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primeamerica is owned by this group and several other companies
ReplyDeleteSo Clinton era Enron style accounting catches up with a really Snitibank...
ReplyDeletereflect and discuss, if the market had been allowed to right itself in the 30's, would we have had to have used a foreign war to pull us out of the socialist programs that Hoover instituted and FDR continued under changed names?
hahaha...yes it is funny. that company is nothing but pricks. trust me on this one. i will NEVER give them any business again!
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