Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/28/2012 (2 years ago)

Catholic Online (www.catholic.org)

Is your bank on the list?

Is your bank evil? For the past several years, large banks have been engaging in a wide range of abusive and illegal practices which have cost them more than $10.7 billion in fines this year alone. Those offenses range from illegal foreclosures to laundering money for Cuba and Iran.

Is your bank evil?

Is your bank evil?

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

12/28/2012 (2 years ago)

Published in Business & Economics

Keywords: banks, fines, evil, manipulation, fraud, ethics, mortgage, subprime


LOS ANGELES, CA (Catholic Online) - Big finance, from the stock market to the banks, is losing the confidence of the consumer. According to news reports on MSNBC, more Americans today are pulling their money out of the stock market than ever before. Banks are also being hit repeatedly with fines from the government and lawsuits from consumers.

What's going on in our financial sector?

One of the things that made America such a great country and an economic powerhouse, has been public accessibility to the stock market. Throughout the 20th century, and particularly in the last few decades, the public has been able to invest private capital into markets right alongside billionaires like Warren Buffet and Donald Trump.

The development of electronic trading software for personal computers and the internet has allowed billions of dollars, possibly trillions, to flow into the stock market and into banks. This infusion of capital has fueled much of the prosperity of the past few decades, a prosperity enjoyed by most, even in the face of recession.

However, some have taken liberties with the money. Bernie Madoff comes to mind, however he was not alone in his endeavors, nor was he an anomaly. Entire financial institutions have been cheating consumers and flaunting the law - and without the risk of prison.

Consider these example cases and the sometimes record-breaking fines associated with them:

-    $175 million paid by Wells Fargo to settle cases with minority homeowners who were sold subprime mortgages.

-    $210 million paid by Bank of New York Mellon for directing customers to Bernie Madoff.

-    $335 Million paid by Deutsche Bank and Flagstar for selling risky mortgages without disclosing that level of risk to buyers.

-    $1.2 billion paid by UBS for manipulating global interest rates.

-    $3.2 billion paid by HSBC, ING, and Standard Chartered for laundering money for Cuba and Iran.

-    Another $5 billion paid by banks for various violations especially associated with the subprime mortgage market.


Note that these fines are only those paid to the U.S. treasury and interests. They do not include fines paid to European regulators.

And despite the size of these fines, the banking sector raked in some $167.7 billion in profits throughout 2012. They can easily afford the fines.

The liberties go well beyond manipulating home buyers and interest rates. Loopholes and exploits associated with electronic trading also allow unscrupulous traders to take advantage of the system.

In all, Americans are being fleeced. They may not be able to articulate just why or how, but there's a feeling of gloom in the public sector that breeds mistrust of large banks and financial institutions.

The greater problem may be the overwhelming focus on fiduciary responsibility, which is to maximize profits, without a corresponding focus on ethics. Our financial institutions reward profits and investors expect ever-increasing returns. This provides incentive, even pressure, to return profits in an increasingly competitive and fast-paced market.

Perhaps instead of bonuses paid for record profits, bonuses should be paid for time without lawsuits and settlements. Taken as a whole, with $10 billion on the table, there is profit in that strategy too.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.

By Atarah Haely (NEWS CONSORTIUM)

Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading


BIRTHING PAINS - America on brink as markets plunge Watch

Image of Market collapse is just one of many signs that the end is approaching. What comes next?

By David Drudge, Catholic Online (NEWS CONSORTIUM)

The U.S. stock market opened with a bang on Monday, and it appears to be the same sound you hear when something catastrophic happens to your engine. Several commentators have already dubbed the day, "Black Monday" as the market appeared to be on track for its largest ... continue reading


FINALLY: Researchers reveal that sex does not sell Watch

Image of Sex and violence is not an edge in advertising.

By Linky C. (NEWS CONSORTIUM)

Maybe sex doesn't sell after all. This is what studies reveal in a recent academic journal released by the Psychological Bulletin. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Violence and sex in commercials does not appear to sell anymore. Compared to themes and ... continue reading


3 great tips on how to spot an online purchasing scam Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

With a growing population of people having internet access worldwide, there are a lot of businesses outsourced from the World Wide Web. Online shops sprout left and right because of easy access and an almost free platform, but limits in security are present. If ever ... continue reading


BLEEDING U.S. DRY: Federal taxes draining as much as $17,955 per worker Watch

Image of Tax revenues are about $183,397,970,000 in constant 2015 dollars from the $2,489,016,030,000 in revenue that the Treasury collected for 10 months in fiscal 2014.

By Catholic Online (NEWS CONSORTIUM)

They are bleeding the U.S. - and us, dry with massive amounts of taxation. The federal government collected a record of approximately $2,672,414,000,000 in tax revenues through the first ten months of fiscal 2015. And yet - that national deficit just keeps on getting ... continue reading


National debt frozen at $18,112,975,000,000 for 150 days Watch

Image of Treasury Secretary Jacob Lew explained in a letter dated March 13 that some steps the Treasury would take during the debt issuance suspension period.

By Catholic Online (NEWS CONSORTIUM)

Treasury Secretary Jacob Lew has sent out a letter to Congressional leaders telling them that he was extending a "debt issuance suspension period" through October 30. The amount of the federal debt subjected to a legal limit set by Congress closed on Monday, August 10, ... continue reading


America needs Catholic leadership now, and here's how you can make it happen Watch

Image of Rallies have erupted across the country blaming the wealthy for the plight of the poor, but the truth is, everyone is to blame. Regardless of blame, it's time to talk about what to do, and that talk should be informed by Catholic teaching.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

The stock market is poised for a collapse and that's not a good thing for American jobs. As growth slows and the risk of another recession looms, Americans are left to wonder where the good times have gone.  LOS ANGELES, CA (Catholic Online) - Americans are barely ... continue reading


Pope's environmental encyclical clashes with Catholic Church's investments in oil Watch

Image of The pope's encyclical has prompted debate in Catholic organizations and other churches about divestment. To date, many major American dioceses have resisted the push.

By Catholic Online (NEWS CONSORTIUM)

It's a conflict of interest that concerns many. Pope Francis, with the release of his encyclical, called attention to world ecology and how much climate change - as well as the exploitation of the poor, hinges on "highly polluting fossil fuels." While this is ... continue reading


Print Struggles: Internet becomes United States' Number One source for news Watch

Image of Newspapers in seeing the digital revolution have now since gone online.

By Catholic Online (NEWS CONSORTIUM)

When people in the United States want to hear about what's breaking in the news - they turn not to newspapers or TV, but online news sources. The immediacy of online news and its ability to instantly update stories while they happen has many other forms of mass ... continue reading


MANY GIVE UP: 93,770,000 Americans not working - and not seeking work Watch

Image of At its absolute lowest since the late 1970s, the BLS highlighted that the unemployment rate remained at 5.3 percent and non-farm payroll jobs increased by 215,000.

By Catholic Online (NEWS CONSORTIUM)

According to recent figures, as provided by the Bureau of Labor Statistics, many Americans have simply given up. They are either living with their parents, living off of their spouse's income or found a way to stay out of the job market. It's estimated that ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Deuteronomy 4:1-2, 6-8
1 'And now, Israel, listen to the laws and customs ... Read More

Psalm, Psalms 15:2-3, 3-4, 4-5
2 Whoever lives blamelessly, who acts uprightly, who ... Read More

Gospel, Mark 7:1-8, 14-15, 21-23
1 The Pharisees and some of the scribes who had come ... Read More

Reading 2, James 1:17-18, 21-22, 27
17 all that is good, all that is perfect, is given us ... Read More

Saint of the Day

Saint of the Day for August 30th, 2015 Image

St. Rumon
August 30: St. Rumon, also known as Ruan, Ronan, and Ruadan, was probably a ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter