Private Banking

bank

Decent, though under-researched and punchless, story in The New York Times yesterday about the punitive failure that is for-profit banking.

Worth reading, even though it certainly understates the size and meaning of this unmentionable scandal.

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High Arka
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By denying accounts to low-income people, they’re not actually denying access; they’re just increasing their profit margin by shifting those people to their payday-loan subsidiaries. One of the cutest hypocrisies about capitalism is that increased capital increases the value of each penny, rather than the other way around. You have to work harder to get a rich guy to buy your $12.50 sandwich than you do to get a poor guy to buy the same sandwich at the same price. Banks spent a long and profitable time in the 1990-2010 period giving low-income people free accounts, then charging usurious “overdraft”… Read more »

Will
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Will

My all time favorite book title is “The Best Way To Rob a Bank is to Own One” by Bill Black, a regulator/lawyer who prosecuted S&L malfeasance in the 80s. He actively writes and interviews about the frauds of the last decade. You would really enjoy the book and his insights if you don’t already know about him.

Michael Dawson
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Quite so, Arkie. The fact that all the overdrafters have already paid those criminal fees, and then wind up frozen out, but, of course, don’t get a refund of their fees — one aspect of how limp that NYT piece was, despite the hotness of the topic.