Cognitive Dissonance

"Democracy! Bah! When I hear that I reach for my feather boa!" - Allen Ginsberg

Posts tagged banks

486 notes

For these largely hourly workers, paper paychecks and even direct deposit have been replaced by prepaid cards issued by their employers. Employees can use these cards, which work like debit cards, at an A.T.M. to withdraw their pay.

But in the overwhelming majority of cases, using the card involves a fee. And those fees can quickly add up: one provider, for example, charges $1.75 to make a withdrawal from most A.T.M.’s, $2.95 for a paper statement and $6 to replace a card. Some users even have to pay $7 inactivity fees for not using their cards.

These fees can take such a big bite out of paychecks that some employees end up making less than the minimum wage once the charges are taken into account, according to interviews with consumer lawyers, employees, and state and federal regulators.

The New York Times, "Paid via Card, Workers Feel Sting of Fees" | June 30, 2013

Colleges are doing this as well with financial aid and veteran’s benefits refunds. I wasn’t taxed by the U.S. government on my education benefits, but Higher One sure took a chunk with all their fees.

Filed under Politics Economy poverty banks banksters Wall Street war on the poor

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The LIBOR scandal: The rotten heart of finance | The Economist

thebardofavon:

THE most memorable incidents in earth-changing events are sometimes the most banal. In the rapidly spreading scandal of LIBOR (the London inter-bank offered rate) it is the very everydayness with which bank traders set about manipulating the most important figure in finance. They joked, or offered small favours. “Coffees will be coming your way,” promised one trader in exchange for a fiddled number. “Dude. I owe you big time!… I’m opening a bottle of Bollinger,” wrote another. One trader posted diary notes to himself so that he wouldn’t forget to fiddle the numbers the next week. “Ask for High 6M Fix,” he entered in his calendar, as he might have put “Buy milk”.

What may still seem to many to be a parochial affair involving Barclays, a 300-year-old British bank, rigging an obscure number, is beginning to assume global significance. The number that the traders were toying with determines the prices that people and corporations around the world pay for loans or receive for their savings. It is used as a benchmark to set payments on about $800 trillion-worth of financial instruments, ranging from complex interest-rate derivatives to simple mortgages. The number determines the global flow of billions of dollars each year. Yet it turns out to have been flawed.

Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks.

Yeah ever since I read about this my disgust for bankers has multiplied exponentially. 

A must read ^^

(Source: kenyatta)

Filed under news banking banks LIBOR interest rates economics collusion the economist

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pixelcycle:

pantslessprogressive:

shortformblog:

U.S. to sue banks over mortgages: This oughta be fun. The list includes a over a dozen names, such as Bank of America, Goldman Sachs and JPMorgan Chase. “The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors,” the article says, “failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.”

Big freaking news.

woah…

God, the cynic in me is thinking, “Yeah, this’ll go nowhere…” but the idealist in me is screaming, “FUCK YEAH!”
Let’s see what happens here. If it doesn’t go anywhere, you can always sharpen the pitchforks and fire up the torches, no?

pixelcycle:

pantslessprogressive:

shortformblog:

U.S. to sue banks over mortgages: This oughta be fun. The list includes a over a dozen names, such as Bank of America, Goldman Sachs and JPMorgan Chase. “The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors,” the article says, “failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.”

Big freaking news.

woah…

God, the cynic in me is thinking, “Yeah, this’ll go nowhere…” but the idealist in me is screaming, “FUCK YEAH!”

Let’s see what happens here. If it doesn’t go anywhere, you can always sharpen the pitchforks and fire up the torches, no?

(via bionicspacejelly-deactivated201)

Filed under bank of america banks goldman sachs government lawsuits jpmorgan chase lawsuits mortgages