Yeah 3% is bad, as in a slight change of the prime rate and you’re bankrupt bad. I’m not surprised they’re in cutback mode.

Short answer: They’re profitable (In the billions), but on a company that big their profit margins are very slim, about 7%.

People see a profit of 16-20 Billion and think the company must be rolling in it, but as a percentage they’re not doing great and I can see why the CEO is concerned.