Gift card holders Next to Fed Window?

Posted by Annoyed Trader | 8:42 AM | 0 comments »

Everyone BUT the ones that matter are getting help from the Fed. What about the consumer getting reamed from the same banks getting Government Bailouts? Consumers not only have decreasing credit card and home equity line limits but now they have to worry about their GIFT CARDS, a once BOOMING business for retailers. With many retailers falling into bankruptcy this holiday season where do holders of gift cards stand?

Gift card holders could lose more than $75m from just store and restaurant closings in 2008, said Brian Riley, senior analyst at Tower Group, a consulting firm. And if you think you are safe from this in states such as California think again! In August, home-furnishing retailer Bombay Co., which closed 388 stores, won approval from a U.S. bankruptcy judge in Fort Worth to pay off gift card holders 25 cents on the dollar.

Perhaps the Fed should open the Discount window to GIFT CARD holders now!

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