Generational Dynamics Forum - New Site

How big has this industry become?

It's a huge industry in the state now. It's very, very big. At one time, in my last couple years in office, 16 percent of all the people in the state were employed in the financial services industry. We had a United Airlines back office in Rapid City, S.D. Michigan National Bank took its credit card operation to Rapid City. Green Tree Financial took a back office, had about 1,000 jobs in Rapid City. First National Bank of Nebraska has its credit card operation in Yankton, S.D. That's 500, 600 people. First Premier Bank has a credit card operation in Sioux Falls that has an outlying operation in Vermillion, S.D.; Watertown, S.D; and on the Black Hills in Spearfish, S.D. Household Finance came here. They ultimately were bought out by Citibank, but they still operate in an independent operation in Sioux Falls.

Sears came with a Novus card. They were actually going to bring the Sears Discover card here. This is the place where the Sears, Roebuck company bought the Farmers State Bank, the first state bank of Hurley, S.D. A little community of several hundred people in the state, their bank is still owned by Sears, Roebuck and Co. The Novus operation came here.

Bank First has about 1,000 people employed here. Norwest Bank is expanding right now; they brought the old Dial Finance here and the Dial credit cards. They're expanding, adding about 500 to 800 jobs right now as we talk in the community. Retailers National Bank is here. Retailers National Bank, if you had a Dayton Hudson card or a Marshall Field's card or a Target card, you sent your payment to Sioux Falls, S.D. ...

Read more: http://www.pbs.org/wgbh/pages/frontline ... z1KxQ3xFyY

You said it was a hell of a deal for Citibank. What did they get out of this?

What Citibank got out of it? They got to stay alive, because Citibank was losing millions, millions of dollars a day. And once they could raise what they chose -- look, when this all started, Citibank has what, 50, 60 million credit cards [now]? I don't know what it is. At the time this started, they had three and a half million total cards, and [more than two] million of them were in New York, New Jersey, and Connecticut, but they had rolled out a national program and were mailing credit cards all over the country.

What did Citibank get out of it? It got the ability to reverse the arbitrage. Actually, what they got was the ability to give themselves a profit, and that saved the bank. I mean that really. Credit cards saved Citibank, and I've heard the most senior people at Citibank say that over and over and over publicly and privately, that it was credit cards that carried Citibank through the early '80s and through the '80s into the '90s, and gave them the opportunity to survive. They never made any bones about that, in any place that I ever attended, anything I ever heard them say. Walt Wriston said that in Fortune magazine, Forbes magazine. All of their senior people used to say it, that South Dakota saved Citibank. I believe it did.

Read more: http://www.pbs.org/wgbh/pages/frontline ... z1KxVZJ400

Higge

That was a good video and info.

I am proud to say I'm a 'Deadbeat" ! Pay off every month.I'ed rather be called that as opposed to them,Blood sucking low life scum !

It was from '04' so they have made some changes. But then they get 'creative'in other way's to get you !

I watch Suzi O sometimes. She stated that even if you have an over due book at the library with a fine that it effect's your FICO score.

I have been watching our C.C. to see if the interest goes up.It hasn't, but now I know why. No slip up's. Yet !

So I did get from that if the Credit Card Business saved the Bank's back when... then it is reasonable to think if their bubble burst or people with job loss living in their car's now,not paying their extortional charges and more every day. That it can bring them down. That's why they are so hell bent on these Debit fee's. They know it also.

I've been trying to express to people I know that those still left standing and over time are going to carry the burden of those who have fallen and sadly still are everyday.We have downsized just about every thing,even the cat gives us a "Don't Think it'! look when 'he's at his feeding bowl.

We have to deal with the Homeowners mess here in Fl.

We call it "Legal Extortion " too. The Credit Card Industry remind's me of "Pimp' $ But we call the Medical System here (Dr's)Our Pimp's and our Drug Dealer's to ! Medicare is clueless ! Medicaid even worse.

But I think "now" they are getting it and going extream in the other direction.

I will give up my Debit card if I get fee's to use it.

But funny enough ,just yesterday we went to pay cash for Auto Ins. We choose Progressive. They would not accept cash.We had to use a Debit Card ? We weren't in a Progressive office. I don't know if that would have mattered?

Good stuff on Frontline.

Thank you.
jusme