As I do from time to time, I checked the position of my HSBC - Mastercard to ensure everything was up to date and in good standing as I have kept it since opening this account. I came to find out that my credit limit was slashed by nearly $3400! No justification was given but for that it was a business decision by HSBC after a review of their customer base and accounts. I am not unsophisticated nor naive to think this could not have happened to me, since I have heard warnings from various news sources that this could happen at any moment, to anyone. But even to someone who consistently keeps his account up to date, paying the account in full every month?
HSBC, through the economic turmoil that is enveloping the U.S., if not the world, has seen its market capitalization decrease significantly since 2007 when it was nearly on par with Citigroup. However, it still remains one of the largest, if not the largest, banks in the world! So, in addition to my question above, if HSBC is doing this, are the others not far behind? In fact, the only surprise to me in all of this really is that others have not done similar already.
But this cannot be the way. The consumer has made some mistakes I am sure, as have the banks. But the banks cannot get the bailouts on some contrived notion that without them, this economy fails while the consumer not only receives no bail out at all but is increasingly burdened with a lack of credit. With the banks, the economy failed and now as we the people are trying help them, they are failing the very consumer that got them where they were and are helping them get out of where they are.
If this is a business decision, then it should be the people's decision to let them fail, go bankrupt and disappear. If they will not lend nor provide credit, what do we need them for? Sympathy they will not give.
0 comments