Do You Think That Banks Are Crooks?

[thaiturkey]

Financial market regulators have just stung Barclays for what is a record fine and the CEO has declined a bonus that would have kept most people going for years. Other banks are being investigated.

Barclays were caught manipulating the inter-bank interest rates. If you think that was just a game that they played with other banks, the BBC TV World News this morning said that it may have caused mortgage rates to be higher than they should have been.

What a slap in the face for people who have lost their homes and businesses because they couldn't afford the repayments. As they were thrown out on the street last year, Bob Diamond, Barclays CEO, took home a bonus of around $4m!

Here's more:

http://www.bbc.co.uk/news/business-18612279

 

[Mskayladog]

Of course not they are just following orders from George soros. Banks are not crooked its the higher ups who give the orders. Its why we have our $ in a small home town bank and don't use credit cards.

 

[thaiturkey]

Of course not they are just following orders from George soros. Banks are not crooked its the higher ups who give the orders. Its why we have our $ in a small home town bank and don't use credit cards.

A good idea but what the big banks do affects the small banks too.

 

[punk-a-doodle]

http://moveyourmoneyproject.org/
There are many reasons to support small, local businesses in general.

But absolutely, the big effect the small, often in ways that still manage to stun and repulse me.

 

[THE Curmudgeon]

Banks are merely another TYPE of Business....

Just the same as Your Neighbor is merely another TYPE of Person...

Banks, as with ALL Businesses ( that Survive ), attempt to "Maximize Profit".

The "Ethics", etc. within which a Bank operates depends upon "The Management Personnel and Policies" (and the Employees) of that Particular Firm.

No More....No Less.

Same goes for Preachers, Policemen, Politicians, and Paupers...( and all other People.)

FACT.
THE Curmudgeon

 

[chickened]

If you entrust someone or something with your money personal responsibility should prevail. I borrow from private individuals for this reason, always have when I have the choice. The Chinese do it, the Arabs do it, Jewish people do it.

Gotta read the fine print folks.

If they tell you one thing and then do another that is their prerogative unless they specifically say they will do something and not do it.

Most banks are insured by the FDIC up to 100,000.00 or more.

People losing their homes from treating it like a piggy bank have no excuses.

 

[hemet dennis]

There are crooks in every profession.

 

[Capvin]

It is really remarkable to me to read and hear some of the misconceptions people have about all sorts of things. First of all George Soros has nothing to do with any banks nor their policy decisions. I would really be very curious to hear why you singled out Soros for that piece of misinformation. Do you believe that it is people "like" him that run our financial system? Just curious and would like to hear your response. There, of course, may be some individuals in a bank that may do an illegal act but that does not necessarily mean that the bank has encouraged illegal activity. What it really comes down to is a corporate culture and the ethics that are preached to the bank personel by the Board and the senior executives and too often those ethics are non existent and makes it look like the banks are not honest in their dealings with their clients. For the most part over the last several years the banks have done all they can to screw their middle and lower level customers and they have been very successful at it. Just take their policies regarding overdraft fees. Some of them have been preposerous and to an extent, there have been efforts to make them illegal. How about the latest loss by JP Morgan/Chase. 9 Billion dollars loss in a trade!!! And no one is going to jail...just a wee bit of a mistake. To answer your question, Are banks crooks? Technically no. A crook is John Dillinger who made no bones about his profession about stealing kmoney. A bank on the other hand is quite a bit better at stealing your money then John was but they do it under the cloak of some devious rules and regulations that you are totally unaware of until you find your pockets empty. So the main difference is John was more honest and used a gun. The banks are more dishonest and do not need a gun.

PS: Ed, the FDIC insurance was raised to $200,000 and better a couple of years ago. Other then that I really liked your post and think it is quite accurate.

 

[Stephanie739]

I think the majority of those heading banks just push the boundaries of ethics, i.e. overdraft fees, bailouts vs exorbitant bonuses, etc., but I have a very good opinion of community banks. I have dealt with two small community banks in recent history, and have also dealt with one large nationwide bank conglomerate. The difference is huge. The local bank actually treats me like a human being, and with kindness. The other treated me as prey.

The housing crisis (beginning of the global financial catastrophe) wasn't really caused by banks. It was caused by unbridled fraud by mid level mortgage brokers who raked in huge commissions each time they secured another home loan, and then made worse by those financiers who purchased insurance policies (were set to cash in) when the loans went bad (AIG went under because it couldn't pay the losses it sustained - that seems borderline criminal to me too)

Those who purchased homes they knew they could never afford are just as much to blame. I know the fraud happened like this because I bought my house during the bubble. I was encouraged to take out a huge loan, with no income verification (I didn't even have a job, only a plan for my eventual self employment!) I knew I couldn't afford the payments and the way it was being offered scared me - I thought I would get in trouble for fraud by going that route! This was the subprime market. Nevertheless, those who allowed the crisis to occur received bailouts and bonuses while a majority of homeowners lost money, even the responsible homeowners, when the bubble burst.

Who is to blame? Surely they saw the fall coming?! Where/who did the bailouts come from?

 

[hemet dennis]

It is really remarkable to me to read and hear some of the misconceptions people have about all sorts of things. First of all George Soros has nothing to do with any banks nor their policy decisions. I would really be very curious to hear why you singled out Soros for that piece of misinformation. Do you believe that it is people "like" him that run our financial system? Just curious and would like to hear your response. There, of course, may be some individuals in a bank that may do an illegal act but that does not necessarily mean that the bank has encouraged illegal activity. What it really comes down to is a corporate culture and the ethics that are preached to the bank personel by the Board and the senior executives and too often those ethics are non existent and makes it look like the banks are not honest in their dealings with their clients. For the most part over the last several years the banks have done all they can to screw their middle and lower level customers and they have been very successful at it. Just take their policies regarding overdraft fees. Some of them have been preposerous and to an extent, there have been efforts to make them illegal. How about the latest loss by JP Morgan/Chase. 9 Billion dollars loss in a trade!!! And no one is going to jail...just a wee bit of a mistake. To answer your question, Are banks crooks? Technically no. A crook is John Dillinger who made no bones about his profession about stealing kmoney. A bank on the other hand is quite a bit better at stealing your money then John was but they do it under the cloak of some devious rules and regulations that you are totally unaware of until you find your pockets empty. So the main difference is John was more honest and used a gun. The banks are more dishonest and do not need a gun.

PS: Ed, the FDIC insurance was raised to $200,000 and better a couple of years ago. Other then that I really liked your post and think it is quite accurate.

It's a possible $9 billion loss and not one trade but many trades.
Were any of the trades done illegally ? If not do you really think someone should go to jail for not doing something illegal ?
If some plumbers cheat and over charge are all plumbers crooks ?
JPMorgan Chase returned its bailout funds on Jun. 9, 2009 and the taxpayers made a profit of $1,745,457,131