I have seen much in the news in the last few days about Citigroup laying off employees. CNNMoney is also reporting that they are gearing up for rate hikes on their credit cards. I have two questions:
1) Isn’t this the same Company that was going to “bail out” Wachovia? How could they have been in a position to “bail out” anyone if they are in as bad a shape as they are now?
2) What are they doing with the $25 billion received from the government as part of the $700 billion bail out plan? How is raising interest rates on consumers going to help the economy? Shouldn’t this have been some sort of stipulation in the bail out?
This whole bail out that the Treasury Department and Congress pushed through is looking worse by the day.