Citigroup's announcement that it has boosted interest rates on up to 15 million U.S. credit-card accounts has some focused on Treasury Secretary Geithner. How interventionist will the Obama Administration become, given they own a one-third stake in Citi? Will they force a roll back of the rate hike, especially since it appears that the hike was instituted now, in part, ahead of the kick in of portions of the recently passed Credit Card Accountability, Responsibility, and Disclosure Act. The Act takes effect in full in February 2010, but a few key provisions kick in at the start of August.
Will Geithner become the Czar of Credit Card Interest Rates? Only time will tell.
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