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'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Business & Economics

An amazing 2,500 of the world's most prestigious people canvas Davos, Switzerland for this year's World Economic Forum Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Around 1,700 private jets will cover the sky, as the most elite people of the world descend on the annual World Economic Forum in Davos, Switzerland. Throughout the next week, world leaders, wealthy businessmen and even influential pop stars will come together to speak ... continue reading


Do they have your best interests at heart? A shocking 50 PERCENT of the global wealth precariously belongs to only ONE PERCENT of the world's population Watch

Image of Nearly 50 percent of the world's entire riches belong to only one percent of its people.

By Abigail James (NEWS CONSORTIUM)

Davos men, the world's most elite billionaires and politicians, gather at the World Economic Forum to once again attempt to tackle inequality between the rich and poor as the disparity continues to grow. LOS ANGELES, CA (Catholic Online) - Every year the world's ... continue reading


Downturn of low gas prices: Schlumberger to cut 9,000 jobs due to decline at pump prices Watch

Image of The precipitous fall of $1.8 billion came in a series of one-time charges related to the steep fall in commodity prices.

By Catholic Online (NEWS CONSORTIUM)

There is a downside to the plunging prices at the gas pump: Americans will be losing jobs as companies struggle to make up the difference in falling revenue. Case in point: Schlumberger is cutting 9,000 jobs due to low oil prices. Other petroleum companies are ... continue reading


Improved economy? Study says labor force participation at 36-Year Low Watch

Image of The labor force participation rate is defined as the percentage of the civilian non-institutional population who either had a job or was actively seeking one during the month.

By Catholic Online (NEWS CONSORTIUM)

Gas prices may be cheaper, consumer confidence may be higher - but that does not take away from the brutal fact that many Americans remain jobless. A record 92,898,000 Americans 16 and older did not participate in the labor force in December, as the labor force ... continue reading


The Rise and Fall of the World's Poorest Nations Watch

Image of Leaving list of LDCs entials that of productive capacity development, structural transformation resilience building and sustainable improvement in human and social capital.

By Thalif Deen, Inter Press Service

The world's 48 Least Developed Countries (LDCs) - a special category of developing nations created by the General Assembly in 1971 but refused recognition by the World Bank - have long been described as "poorest of the poor" in need of special international ... continue reading


Is pot the future boom business? The founder of Pay Pal thinks so Watch

Image of The co-founder and former CEO of PayPal, Peter Thiel is investing multiple millions of dollars into Privateer Holdings, a Seattle-based marijuana growing, production, distribution and information company.

By Matt Waterson (NEWS CONSORTIUM)

Founders Fund, a $2 billion dollar, San Francisco-based venture capitalist firm ran by the co-founder and former CEO of PayPal is moving in a new investment direction, turning towards pastures a little greener than former tech and Silicon Valley ... continue reading


Here is the top 10 list of the world's most widely used currencies. Numbers 9 and 10 surprised us! (PHOTOS) Watch

Image of The list of most widely used currencies will surprise you. Confederate money was once sold in bundles to kids for use as play money.

By Catholic Online (NEWS CONSORTIUM)

You might not be surprised to learn that the U.S. dollar is one of the world's most widely used currencies, but there are other less-familiar currencies used around the globe. The list of the top 10 might surprise you. We were surprised to see the last two currencies ... continue reading


Crossings Tea releases unique Chinese tea

Image of Crossings Tea, grown in the remote heartland of China.

By John W. Smagula

Crossings Tea announces the release of its Chinese black, green, and jasmine tea. From the remote Three Gorges region of Central China, Crossings Tea has pure and refined flavors that capture the essence of classical Chinese tea. The company supports the local Yichang ... continue reading


OPEC price war increases; Brent Oil hits new low Watch

Image of Crude prices have plunged since the Organization of Petroleum Exporting Countries, or OPEC agreed this November to leave its production quotas unchanged at 30 million per day.

By Catholic Online (NEWS CONSORTIUM)

Hard as it may seem, not everyone is welcoming low prices at the gas pump. Brent crude plunged below $57 per barrel this week. The event marked a new five-and-a-half-year low while traders wager that the global oversupply of oil will continue deep into 2015. ... continue reading


In a bid to 'get rid of gasoline' Toyota makes history with first hydrogen-powered retail car - Coming to a dealer near you in 2015! Watch

Image of The Myrai will be the first hydrogen fuel cell-powered car you can buy, starting in 2015.

By Catholic Online (NEWS CONSORTIUM)

Toyota is making automotive history by selling a car powered by hydrogen. Sales in Japan began on Dec. 15, and will begin in the USA in 2015. Running off electricity created by hydrogen fuel cells and emitting only water, the car could revolutionize driving as well as ... 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, Hebrews 9:15, 24-28
15 This makes him the mediator of a new covenant, so ... Read More

Psalm, Psalms 98:1, 2-3, 3-4, 5-6
1 [Psalm] Sing a new song to Yahweh, for he has ... Read More

Gospel, Mark 3:22-30
22 The scribes who had come down from Jerusalem were ... Read More

Saint of the Day

Saint of the Day for January 26th, 2015 Image

St. Timothy
January 26: Born at Lystra, Lycaenia, Timothy was the son of a Greek father ... 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