BOA Question

[terps1313]

Just a hypothetical. What would happen to credit card debt if they were to go under?

 

[Donnybasbl]

If it came to it, someone else would buy up the receivables.

 

[Risk44]

they are not going under.. its all a joke...

 

[Betallsports]

I think this would be Better Suited in Here.


Donnybasbl I believe is Right.

 

[terps1313]

OK no problem. Who would have the money to buy it all up? Lou I realize the odds are slim to none, but was just curious.

 

[Donnybasbl]

OK no problem. Who would have the money to buy it all up? Lou I realize the odds are slim to none, but was just curious.

I don't think B of A is going under, but if it were to happen, whoever is buying the debt would probably get it at a discount. There isn't going to be a bidding war and some bank will get it at some % of the original value and then all they have to do is hope that their collection rate + interest earned is greater than the % they bought at.

I would guess that HSBC, Chase and maybe a couple of the Chinese banks would be candidates.

 

[tiznow]

if the government ends up having to take a majority stake in BAC they likely will put it in some sort of receivership type deal and than chop it up into little pieces selling off the various assets to various private entities

it won't get sold as one whole clump