Got this from finance.yahoo.com. It seems that things are suddenly going wrong for the big U.S. banks.
Starting late Thursday, the financials had a really bad weekend when a Senate report found JPMorgan had misled regulators (and investors) in its disclosures surrounding the now infamous London Whale trade.
Whaaat? A bank misleading its investors and customers? Look, the big banks in this country (specifically Bank of America, JP Morgan, Wells Fargo, and CitiGroup) are all technically bankrupt. That is, their liabilities (like money they owe their depositors) far outweigh their assets. Why do you think that the federal government
gave them taxpayer money bailed them out in 2008?
I have a personal anecdote to share regarding Bank of America. When I was an undergraduate at UNLV, I knew students from California who had checking accounts with BoA. They related many horror stories of having a large enough balance in their accounts to cover their expenses. In all cases, when they got their bank statements their accounts were invariably shown to be overdrawn, even when their own records showed that they had a positive balance. BoA was showing their accounts to be overdrawn when they actually weren’t, and then charging them overdraft fees on transactions. If this wasn’t theft, nothing is.
This whole concept that some entities are ‘too big to fail’ is a load of male bovine excrement. These large banks need to be broken up, Dodd-Frank needs to be repealed, and Glass-Stegall needs to be reinstated as the law. There are reasons why regulations and laws were passed during the Great Depression, the major reason being to prevent the shenanigans that led to the Great Depression in the first place.
Otherwise, here we go again…