They are penalized. They declare bankruptcy, have the cars and homes taken from them and generally have a significant stain on their credit for a substantial t

They are penalized. They declare bankruptcy, have the cars and homes taken from them and generally have a significant stain on their credit for a substantial time period. Alternatively, financial companies, especially in the 2008 crisis, receive small wrist slaps in the form of tiny fines and public rebukes while now, 5 years later, they are returned to record profits. These days, almost all of us, individuals and corporations alike, live off credit in some form. The difference between individuals and the banks is that when individuals mismanage their credit, something bad actually happens to them.