As much as I despise the rates these companies charge and have gotten away with in times of low defaults, they are now being called on the carpet.  The goverment intends to put its nose in another area of our business, another facet of our lives, another part of our country, invaded and destroyed.  If they go broke from their practices so be it.  The companies are in big trouble no doubt- it is a double wammy - people that can are reducing their debt load (and therefore reducing their paying assets and interest profits), those that cannot are defaulting..  The goverment wants them to lower their rates.  History has not treated economies kindly whose interest rates did not reflect risk.  Much of the issues today come from interest rates that did not reflect the risk of default - so when defaults occurred there was no pool of other payment to cover the loss. 

When you look at the TARP program you have to realize that this is how the mafia works:

Step 1:  You NEED a loan to help your business    (I'm gonna make you a deal you cannot refuse)

Step 2:   Charge an untenable interest rate              (10% on the loan when rates ar 3-4 %) so that is a 300 % increase in interest charges about the only                                                                             thing the banks can make a profit on if they are paying 10% on money is real junk bonds and credit card.  Maybe a little on cars. 

Step 3:   Convert your 'loan' into ownership            (Convertable stock warrants backing all loans)

Step 4:   Start demanding changes in compensation for management    (Fire em, Drop their pay, tax their bonuses away)

Step 5:    Start looking for the next poor b***in line.    The Credit Card companies are next