The Fat Lady Has Begun To Vocalize

Mish had posted a most informative article Friday about CitiBank's pending meltdown and its issuance of millions of letters to its cardholders, informing them that their interest rate would be 29.99% from henceforth--even if they had a stellar credit rating!

Well, by this afternoon, the damage control efforts were underway.  The chief executive in charge of spin had emailed Mish.

That was quick!

I'll let Mish take it from here:

Email From Citi's Vice President, Public Affairs

This morning, in response to Citi-Grinch I received the following Email from Citi's Vice President, Public Affairs:

Hi Mr. Shedlock,

I have read your blog posting from Mish's Global Economic Trend Analysis, which appeared earlier today.

I am wondering if we can have a background discussion at your convenience.

Best regards,

Samuel Wang
Vice President, Public Affairs
Citi
153 East 53rd Street
New York, New York 10022

Cordial Conversation

I gave Mr. Wang a call and the conversation was quite cordial. He explained that customers could opt out of the rate hikes, and that in some instances consumers could keep using their card up to the expiration date of the card at their old rate.

What I asked Mr Wang:

• How many total cards do you have?
• How many received the letter?
• What percentage could keep using the card at the old rate until the card expiration date?
• What is the percentage breakdown by FICO score of those those receiving rate hikes or lowered credit limits?
• Is Citigroup setting up to exit the credit card business?

Whatever answers I get, I will post.

Did these people think they could do this and not have a firestorm on their hands?

Did they think that someone wouldn't publish one of these letters, and that thousands of people wouldn't read them?


What planet, I ask again, do these clowns live on? (Certainly not ours!)


Just wait until thousands upon thousands of their customers decide to just give them the finger, and stop paying.  Then, add to that, the thousands of depositors who can take their business down the street to a small, locally owned bank, where every customer is known by name. (I bank with two such firms.)

It's dawned upon the customers that they have some power in the relationship, and if enough of them rebel, no one can save Citibank.

And, given odious events lately, no one will want to; especially in Congress, one year away from facing an enraged electorate.

There's the old joke about opera: It ain't over until the fat lady sings.
 
The fat lady has begun to vocalize.