EMAIL SIGN UP!
Most Popular This Week
Popular content
Today's Top News
Grinning Bankers
Like ugly on a toad, banker greed just can't be rinsed off, no matter how much regulatory soap you use.
Last week, Congress enacted new rules to govern America's huge banks, thus completing Washington's response to the unbridled Wall Street greed that crashed the financial system and crushed our economy. The regulatory reforms were hailed by Democrats as possessing powerful cleansing power, while Republicans wailed that the new rules were overly caustic, imposing such a heavy-handed governmental scrub that the delicate layers of Wall Street innovation, competitiveness and profitability will be rubbed away.
Meanwhile, the big bankers were grinning from ear to ear, for the bill requires no restructuring and decentralizing of the monopolistic grip that these giants have on America's credit system. Thus, they still retain the power to rip off consumers, gamble with depositors' money, haul in exorbitant profits and pay themselves ungodly bonuses - all while remaining "too big to fail."
Yes, the banking barons now have to adjust to stricter regulations, many of which are good and long overdue. But these guys are experts at slipping out of governmental leashes. Indeed, JPMorgan Chase alone has had 90 "project teams" at work for months, plotting end runs around new regulations long before they were even passed.
For example, the law restricts those infuriating overdraft fees that banks have been sneaking into our debit card accounts. A victory, right? Yes, but bankers didn't miss a beat in finding another way to pick our pockets - they're already imposing new "maintenance fees" for basic checking accounts.
Forget receiving a free toaster for opening an account - Bank of America, Wells Fargo and others now hit you with up to $15 a month just for the privilege of putting your money in their bank for them to use.
Jaimie Dimon, CEO of JPMorgan Chase, insists that this is necessary. "If you're a restaurant and you can't charge for the soda, you're going to charge more for the burger," he lectures.
Come on, Jamie, drop the mom-and-pop pose.
You're not a little restaurant struggling to make ends meet - you head a monopolistic financial behemoth that helped ruin the economy for moms and pops, then took billions in taxpayer bailouts, used the crisis to increase its monopoly power, continues to get federally subsidized money, has just announced a 78-percent hike in profits. and recently paid you a salary and bonus of $18 million.These giants are Washington insiders who routinely rig the rules and get favorable treatment. Take Goldman Sachs. Last week, federal regulators hit it with one of the largest fraud penalties in financial history - half-a-billion bucks. Federal officials crowed that this level of punishment will get Wall Street's attention, compelling the banks to return to an ethic of "honest treatment and fair dealing."
But, wait - the same day the penalty was assessed, Goldman's stock price went up by 5 percent. Once again, bankers were grinning. "It looks like a big win for Goldman," gloated one financial analyst, adding that SEC's $550 million assessment "seems like a paltry sum."
It would be impossible for me to put "$550 million " and "paltry" in the same sentence, but do the Wall Street math. Goldman hauls in half-a-billion dollars in profit every 15 days. In fact, the 5 percent boost that Goldman got in its stock price the day of the SEC's penalty added far more than $550 million to its market value - so the giant made money off the deal! Some "punishment."
Washington's bill is an important start on reform, but only a start. Congress and the White House might think their job is done, but public fury at Wall Street's reckless greed will not be abated by a bill that simply doesn't have the stuff to stop the greed. As Wall Street banker and political insider Roger Altman wrote after the bill passed, "Most in our community view it as relatively harmless."
You'll know that real reform has come when the bankers have the grins wiped off their faces. To help push structural reforms that really can restore "fair dealing" to America's banking system, connect with Americans for Financial Reform: www.ourfinancialsecurity.org.
- Posted in
Comments
Note: Disqus 2012 is best viewed on an up to date browser. Click here for information. Instructions for how to sign up to comment can be viewed here. Our Comment Policy can be viewed here. Please follow the guidelines. Note to Readers: Spam Filter May Capture Legitimate Comments...
22 Comments so far
Show AllIt all starts with "usury" or interest. Getting a loan from the bank is just the deal made in "Dam Yankee". The devil which in this case is the banker makes sure that the Washington Senators still loose to the Yankees. Ha!
The Obama bankster bill is not the END of financial industry reform, it provides a framework within the banksters will write the "regulations", just as the insurance and drug industries wrote the Obamacare bill.
Screw the GD bankers. Nationalize the banks NOW, and send EVERY GD CEO to jail for destroying the national economy ON PURPOSE. This country has ALWAYS hated bankers, and there has ALWAYS been a damned good reason for it. It's because bankers are SCUM. They shouldn't be rewarded or envied, they should be despised and disdained.
If you want a stable economy, you have to keep shit heads like these honest. They won't do it by themselves, and with so much power over the people who SHOULD be the ones in charge, why should they?
We go to jail for smoking a joint, they don't go to jail for destroying the lives and futures of 300 MILLION people! Since they have shown they have NO morals or ethics, I think it's time they get taken OUT of the picture. Jail them until they die, confiscate everything they have stolen from us over the last 30 years, and NATIONALIZE THE BANKS. Then we MIGHT have a chance at survival. Leaving these scum bags in control is nationally SUICIDAL.
If anyone is thinking that Congress has any intentions of rectifying this horrendously unfair banking system of gouging the public while ammassing their own personal fortunes, GET ANOTHER THINK!!!!
The legal system of BRIBERY which goes under the guise of "lobbying," and is making our congressional personnel wealthy, is still quite healthy!!! Even more so since corporations have suddenly become "PEOPLE!!!"
Thus, the banksters now have even more free reign to continue their rapacious shenanigans!!! And this is enabled by Congress itself!
Of the 535 members of the Senate and House, 237 are millionaires - that's 44%! Of the Justices on the Supreme Court, 5 out of the 9 are millionaires - that's 55%!
What does that tell us: the system has rigged itself against the middle class!!! The majority of our "leaders" are milllionaires!!! Does this sound like a group of people who are intent on raising the living standards of the middle class at the risk of their own greed???? NOT A CHANCE!!!!!
I've moved my banking activities and savings to a Credit Union!
Believe me, you're not telling me anything that I'm not aware of. For years, now, LONG before Citizens United, I've been screaming about the absolute need for a complete system of publicly financed elections. I've put up my plan several times, and it's fairly bullet proof, or at least I've never had anyone come up with a good reason it wouldn't work.
Until we make elections open, honest, and without a penny of private money being involved, nothing else will change. Those with too much money and no morals will make sure of that.
And it's about time that the citizens of this country grow up and understand that they are indeed involved in a war, one against those who live by greed. It's been going on for 30+ years, now, and until the average citizen understand that the rich are doing everything they can to screw you, it's just going to keep going on and getting worse.
I'm at a credit union, too.
Where was the public outrage over Wachovia/Wells Fargo laundering DRUG money? They got a fine/slap on the wrist. You and I would be spending the rest of our lives in prison.
Why not just start our own little community banks and F*CK ALL THE GD BANKSTERS?
All anyone need do is look at the mugs of those who we the people have put in charge of the national treasury, to see how far down the rabbit hole we the people have fallen.
Get over it, people - Americans don't care that our Bankster-owned government will continue f**king us, our children and grandkids for every nickle they can in perpetuity.
Look outside right now - does it look like Greece on any given afternoon? Tens of thousands rioting in the streets? Weeks-long protests on Wall Street or in DC? Any manifestation of all this 'anger' and 'frustration' we've been hearing about for years?
No.
Any massive boycotts of anything? No. Sudden termination of all Big Bankster accounts, money moved to smaller institutions? No. Huge purge of Big Bankster stocks? No.
Lots of blogging and commenting on the subject? Whatever.
Big story on how Bush used Gitmo 'detainees' for torture experiments. How did Americans react? Yawn.
Big story on Top Secret America, our out of control intel behemoth. How did Americans react? Yawn.
BP nukes the Gulf, kills 11, no one is indicted. America's upset for a while, and we're already moving on to yawn.
Massey Energy kills 29, has a long history as a habitual repeat criminal offender. No one arrested. Yawn.
Hottest everything on record and getting hotter. Yawn.
Obesity still - STILL! - on the rise. Yawn - and pass the fries.
We The People have given up. How is that not obvious?
Everyone should take all their money out of the banks. I do not see why we haven't. I did...hell after I pay my bills theres not to much left, and I keep it in a secure place. I have a prepaid credit card that I use for planes, hotels ,car rentals, other than that I pay CASH. I wouldn't give those guys a dime. If you have too much money to hold, then put it in safetey deposit box .The bank only makes pennies for that. Nobody ever sticks together in this Country though, if we did we could get so much accomplished.
"Everyone should take all their money out of the banks."
Not possible, most people owe more to the bank than they have in deposits.
But, I do agree with your thinking, as I have been debt-free for 15 years. Best financial decision I ever made!
Here's another take on our investment banks focusing on the most recent fine paid out by Goldman Sachs. Bill Black, author of The Best Way to Rob a Bank Is to Own One explains what the recent SEC settlement with Goldman Sachs means. http://www.newslook.com/videos/230436-the-back-story-of-the-sec-goldman-settlement?autoplay=true
Hightower should of said " the grin slapped off their faces ". I'd feel much better if they slapped them all with arrest warrants and subpoenas, clawback provisions and forfeiture of golden parachutes, etc. Credit unions and community banks are the only place for your money: that is, if there's any left.
I used to be quite strong, much stronger than I am now. I have a shotgun.
Credit unions?
Wescom is starting to charge low-use checking fees. They have a complex scheme for members to get out of it and the charge is less than the $15 quoted for elsewhere. Still, they are ripping people off. Also, they are reported placing coin counting machines in their lobbies that will charge you to dump your piggy bank. You can laugh or cry about that one, but still, its the same old fist up your ass. There must be other credit unions running rip off schemes.
Go to commongoodbank.com to see a better idea. The problem is they need backers to get it started. They probably have more restrictive regulations (granted most are probably neccessary) to start the bank than the Wall Street bankers.
Yep. Mine is jacking off their fees for NSF to $35. So far, they haven't said anything about maintenance fees and such.
FROM:
Robert Weissman, Public Citizen (publiccitizen@mail.democracyinaction.org)
You did it.
Over the past year, Public Citizen activists and members like you kept up the demand for Wall Street reform with emails, letters and phone calls to Congress. 168,474 of them, to be exact. Today, President Obama signed the Wall Street Reform and Consumer Protection Act into law.
This is a moment to celebrate.
The legislation establishes a strong, independent Consumer Financial Protection Bureau. The big banks and their army of lobbyists tried to kill the bureau. We beat them.
The legislation establishes limits on some of the most reckless banking schemes. The big banks and their army of lobbyists tried to preserve every risky practice that crashed the global economy. We beat them.
This is a moment to build on.
The legislation establishes a strong basis for Wall Street reform. Let's keep working together to build on it. We have to break up "too big to fail" banks. We have to rein in obscene executive pay. We have to enact a commonsense tax on financial speculation. We have to make the banks stop treating our entire economy as their private casino.
Thanks for all you did to make this historic legislation happen and for all you will do to build on it.
Public Citizen's Online Action Team
TO: Robert Weissman, Public Citizen
Dear Robert Weissman,
Congratulations to you also! You have capitulated to the neo-liberals. This bill is a total sham. It has done nothing to protect the American people from a future economic crisis of the same present magnitude or worse. The banks are bigger, stronger and fewer in number and we will undoubtedly continue to suffer at the hands of their casino capitalist greed. Even if Elizabeth Warren is appointed, she will have limited powers to stem the black tide of corruption.
You guys might as well start to admit that you are working for the Pelosi and Reid campaign or heading up Dodd's new lobbying group.
You have lost all credibility with me between this and your lackadaisical hope and efforts in Obama to pass single payer reform. Joan Claybrook I am sure is embarrassed as to what you have done to Public Citizen in her leave. How sad for you to have brought PC to a pc level. Take me off you list. I am done with you people.
Sincerely,
a public citizen
☼ I protest, there is NO reason to denigrate toads, or drag them to the level of the banking toadies! Real life toads are NOT ugly, and they're nice people! ...Unlike the Bankers, thank you very much! ◄:)
Every dog -or toad- has its day.
Elite fascists never feel that the tide could turn.
None of the ones at the Nuremberg trials would have ever thought that they could face justice and be hung.
Ti-i-i-i-ime is on our side, yes it is.
If Mr. Hightower thinks toads are "ugly", then he is part of the problem.
I love Hightower's whitty sarcasm. However, he's dead wrong on this one. Nothing is ever going to curtail the unbridled greed of these bastards. We're too far gone for reform, new regulations and change. The only solution now is for everyone to vote Republican so that they can finish the job in the next 4 years. Only when this utterly corrupt imperialistic free for all crumbles to the ground, will we have a slim hope of starting from scratch.
You can avoid the big banks by joining a credit union.