The Banks are Still Ripping us Off

The Banks are Still Ripping us Off
David Schlecht

Just last week Citigroup settled charges (without admitting or denying guilt) that it defrauded investors by selling them a package of mortgage-backed securities rife with mortgages it knew were likely to default, but didn’t disclose the hazard. It then bet against the package for its own benefit — earning fees of $34 million and net profits of at least $126 million. [Robert Reich]

They paid a paltry $285 million in penalties.

That’s nothing near as awful as B of A transferring their failing speculation commodities to their retail section because it’s FDIC insured; in other words, you and I have to pay up when their bad bets go sour.

The American banking industry is ruled by just a handful of banks so we’re still in an era of TOO BIG TO FAIL.