Another Fake Checking Accounts Fine

[Non Sequitur]

If anyone has opened a checking account in the last decade or so knows that isn't a simple transaction anymore. The steps and KYC rules/regs are numerous, there is NO WAY this goes unnoticed.

"Fifth Third Bancorp (FITB.O), opens new tab will pay $20 million in civil fines and offer redress to 35,000 harmed consumers to settle U.S. Consumer Financial Protection Bureau charges it opened unauthorized accounts and illegally repossessed their cars."

https://www.reuters.com/business/finance/fifth-third-is-fined-by-us-cfpb-over-fake-bank-accounts-auto-repossessions-2024-07-09/

 

[OSU Beavers]

I do not bank with improper fractions.

 

[John Hassler]

At what point should a large institutions be economically euthanized?

Here are the most flagrant violators based on fine amounts:

Bank America - $87 Billion
JP Morgan Chase - $40 Billion
UBS - $31 Billion
Wells Fargo - $28 Billion
Citigroup - $27 Billion

How many billion in fines should be the breaking point where regulators just say 'turn in your charter you are no longer in business'? One of the biggest failures of the 2007/8 financial crisis was that the bad players, likes those above, were allowed to survive.

 

[Terrel L. Shields]

One of the biggest failures of the 2007/8 financial crisis was that the bad players, likes those above, were allowed to survive.

And the FDIC has the authority to do exactly that - Jerk their charters.

 

[John Hassler]

As bad as the financial crisis was, I was excited thinking the bad actors would be taken to the wood shed and be told to increase their liquidity or be liquidated. But that didn’t happen. That’s when I gave up on appraising for conforming mortgage lending - no way did I want my work to be associated with the architects of the financial collapse.

 

[Tom D]

with the past large mortgage bankers, and big banks committed frauds, have you heard of anyone going to prison. as long as it's only a fine, it will continue. remember, they all contribute to their politicians, another fraud organization. and friends don't lock up friends.
i only will deal with a small bank, or now a credit union, both of which i have been very happy.

 

[Mark K]

At what point should a large institutions be economically euthanized?

Here are the most flagrant violators based on fine amounts:

Bank America - $87 Billion
JP Morgan Chase - $40 Billion
UBS - $31 Billion
Wells Fargo - $28 Billion
Citigroup - $27 Billion

How many billion in fines should be the breaking point where regulators just say 'turn in your charter you are no longer in business'? One of the biggest failures of the 2007/8 financial crisis was that the bad players, likes those above, were allowed to survive.

That's like saying "tobacco products should be banned because of the harm it does to the public and the costs incurred by the medical industry and Medicare."

Its all about the money. Tax money from tobacco ($11.26 B/year) and $213 Billion in taxes/fines (above total) from the banks directly to the US Treasury.

The gov't loves these guys...next best thing to a goose that lays a golden egg. Politicians huff and puff about the evil companies, all the while taking their campaign cash with a wink and a nod. Politicians are more than happy to let the tobacco companies kill a few hundred thousand people every year as long as the cash keeps rolling in.

 

[John Hassler]

No, I wasn’t saying that at all.

I want the bad actors within any industry to be taken to task be it banks, cigarette manufacturers, or appraisers.

Bank America has been fined $87 Billion for not playing fair. I have no problem with them being dismantled and the parts sold to other companies who play closer to the rules.

 

[Mark K]

Bank America has been fined $87 Billion for not playing fair. I have no problem with them being dismantled and the parts sold to other companies who play closer to the rules.

My point was that it will NEVER happen as long as the bad actors continue to pad the coffers of the gov't via fines and taxes. The gov't loves bad actors with deep pockets.

 

[The Bob]

For most people hitting them in the wallet will get the desired result. That tactic doesn't work very well when it's not their money.