Citigroup: layoffs to 5,000, yet subprime mortgages
The tension in the U.S. credit market has peaked with the outbreak of defaults on subprime mortgages.
The subprime loans, which in previous articles we discussed, are loans granted to customers as “high risk”. They are called subprime loans because of their greater risk and subject to which the creditor.
The problem was a result of loans granted to persons insolvent. But who are these? In a few have mentioned that it is precarious.
A mortgage given to these workers is a mutual risk and being such, to cushion the risk, banks have securitized and sold as securities.
If most workers are precarious, the banks were forced to provide loans to precarious. This explains the speculative bubble of subprime: the precariousness of work and inadequate labor policy.
This is a dog that bites its tail, because the work becomes due and also to the crisis: the U.S. banking group Citigroup wants to cut up to 50 thousand jobs, reducing the number of employees to 300.
All this was reported by CNBC television station, that the ceo of the Group, Vikram Pandit, has decided to implement a blockade of the turnover and redundancy measures that cover all sectors and geographical areas of activity of the bank.