Banks will not only have increased losses, but reduced revenue as well. For some customers, the banks will have to reduce interest payments in order to keep them from defaulting. There's a bit of uncertainty because it's hard to predict human behavior.
Quotes about defaulting (4 Quotes)
Merrick Bank had the highest default rate with 35 percent, followed by Citibank and Providian, both with 29.99 percent. When a customer is actually at the point of completely defaulting, there may have been some signs before that time that the company could've picked up on and dealt with in a more humane fashion than what most credit card companies seem to be doing at this point, ... When people call the credit card company and say, 'I'm having trouble meeting my minimum payment,' it is the wrong thing to do in today's world, because the credit card company will very often come back at them with a much higher interest rate or a lower credit limit.
In corporate debt, you have the credit risk of borrower defaulting and that's why people rely on the rating agencies to provide a guide on the default risk, and the other risk is that there could be a blow out in yields, for instance, you buy a portfolio and inflation takes off or companies go bust.
What's been revealed of Windows Vista is particularly sad. Defaulting to a mode that requires users to enter an administrative password before they can install programs A security-enhancing idea, but one that's been around for ages in Apple's Mac OS X. Integrated search Apple has it now. The Registry There's no sign of that monstrosity in OS X, but it'll still be around in Windows Vista to drive users nuts. Copying the competition's good ideas and retaining a bad one that you actually did originate That's innovation