Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/28/2012 (2 years ago)

Catholic Online (

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?


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

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 October 2015
That human trafficking, the modern form of slavery, may be eradicated.
Evangelization: That with a missionary spirit the Christian communities of Asia may announce the Gospel to those who are still awaiting it.


More Business & Economics

Three BILLION barrels of excess oil available now - but is this a good thing? Watch

Image of Inflated inventories and oil wealth has spread globally, from the United States to the developed economies of Europe, and now China, according to the agency.


With the price of gas comfortably lower than $3 a gallon at many gas pumps across the land, consumers are enjoying a price break. The reason behind this windfall is largely because there are now more than three billion barrels of excess oil in the world. This ... continue reading

HARD NEWS HEADED FOR EXTINCTION! Filters turning off certain information imperil journalism Watch

Image of Daily newspapers have gone from nearly 1,800 in 1945 to about 400.


Newspapers, along with print media in general is in rapid decline - while Internet news, groomed and curried for special interest groups is on the rise. The fallout is that hard news, presented objectively is in dire threat of virtual extinction. "Opinion ... continue reading

The 'WAR ON CHRISTMAS' continues as Starbucks' new seasonal cups spark public outrage Watch

Image of Starbucks is the center of a mass controversy when it decided to release plain red cups this holiday season instead of its traditional Christmas and general holiday-themed cups (Rozzieland blogs).


When coffee giant Starbucks released red cups in place of their traditionally holiday-themed cups this winter, Arizona-based evangelist Joshua Feuerstein cried bigotry. LOS ANGELES, CA (Catholic Online) - In a Facebook video rant, Feuerstein wrote, "I think in the age ... continue reading

Pretty much all you could ask for from the month of October - unemployment at five percent, new hires Watch

Image of The 271,000 jump in payroll was surprisingly robust, far better than the Labor Department expected last week.


"It was pretty much everything you could ask for in a jobs report," Michelle Meyer, deputy head of United States economics at Bank of America Merrill Lynch says. Unemployment was at five percent and there were significant job hires for the month of October. ... continue reading

Invest as a Catholic - without selling your soul! Watch

Image of

By Kevin Jones (CNA News)

For Catholics who want to invest in a retirement plan but hesitate for fear of unintentionally supporting causes contradicting their faith, a financial advisor group is now offering a new option. Washington D.C. (CNA) - "We'd like to see every Catholic organization ... continue reading

SOMETHING IS BREWING: Agreement could lead to biggest beer deal - and top five business deals EVER Watch

Image of The prevailing trend among younger beer drinkers is for smaller, more specialized labels from independent breweries. In response, bigger beer brands are struggling to hold on to their market share.


Something big is brewing in the world of brew. AB InBev or Budweiser is offering SABMiller shareholders $67.59 per share. The maker of Miller Lite, Pilsner Urquell and Peroni, this represents a premium of roughly 50 percent over the share price. The agreement, ... continue reading

Overworked Wall Street employees experience seizures, are hospitalized, and have died Watch

Image of John Hughes in Thomas' bedroom (Damon Winter).


Wall Street has always been a very demanding place to work and with recent work-related deaths, it seems that Wall Street must find a way to provide work-life balance to its employees.  NEW YORK CITY, NY (Catholic Online) - Thomas Hughes was a 29-year-old ... continue reading

7 ways to bring your family out of debt Watch

Image of


There are a lot of ways the improper handling of finances can jeopardize you and your family. The cost-of-living continues to get higher yet your income doesn't. How can you make ends meet? LOS ANGELES, CA (Catholic Online) - Fear not! You can regain control of your ... continue reading

3 easy ways to save money and pay off debt Watch

Image of


Work and play, earn and spend -It's the way the economy survives, but what about your survival? If you're having trouble saving money, don't have a dedicated savings account or just don't know how to stop spending, you may have a problem. LOS ANGELES, CA (Catholic ... continue reading

Is the stock market in trouble? Historical market turndowns following papal visits Watch

Image of Papal visits versus the stock market were reviewed.


As Pope Francis visits the United States, historical data of visits from his predecessors to the United States were linked to several market downturns in the US. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Pope Francis made his historical visit to the United ... continue reading

All Business & Economics News


Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • Opium, heroin or cocaine: What drug is YOUR country known for?
  • Pope Francis does the unthinkable following emotional tragedy in ...
  • Daily Readings for Tuesday, December 01, 2015
  • 'Body lifted from the ground': Young Central American woman dies ...
  • St. Eligius: Saint of the Day for Tuesday, December 01, 2015
  • Parents' Prayer For Their Children HD Video
  • Prayer For Faith HD Video

Daily Readings

Reading 1, Isaiah 11:1-10
1 A shoot will spring from the stock of Jesse, a new shoot will grow from ... Read More

Psalm, Psalms 72:1, 7-8, 12-13, 17
1 [Of Solomon] God, endow the king with your own fair judgement, the son ... Read More

Gospel, Luke 10:21-24
21 Just at this time, filled with joy by the Holy Spirit, he said, 'I ... Read More

Saint of the Day

Saint of the Day for December 1st, 2015 Image

St. Eligius
December 1: Eligius (also known as Eloi) was born around 590 ... Read More