1sunfight’s Weblog

December 23, 2008

Bring Back Robinhood

It was not all that long ago that that the finance and banking industry got a $700 Billion bailout.  They were given the money card blanche, unlike the money the auto industry received.  The banking industry was given a lot of money with no strings attached.   

And what have done with this money? Well, it is none of our business.  When the banks were asked what they did with the money their response has been:

“When receiving billions in aid from U.S. Taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending it.  Some won’t even talk about it.”

“JPMorgan Chase, which received $25 billion in emergency bailout money, said that while some of the money was lent, some was not, and the bank has not given any accounting of exactly how the money is being used.”

A direct response from their spokesperson was, “We have not disclosed that to the public.  We’re declining to.”

Other responses were:

“We’re not providing dollar in, dollar-out tracking.”

And

“Some banks said they simply didn’t know where the money was going.”

Oh, really? But when we go to the bank and ask for a loan we not only have to say what we want the money exactly for, we almost have to prove that we do not need it.  But, when the banks are freely given our money they refuse to tell us how they are using it, and they have no way of tracking it, so how could they?

If that was not enough of an outrage the banks, most notably Citibank is engaging in rate jacking, i.e. taking a person’s interest from a low rate and doubling it without notifying its customers and then not offering an explanation.

To exacerbate the situation they are slashing credit limits on people’s credit cards who have perfect repayment histories, and are well below their line of credit because they do not like where they shop.  That is right, the companies no guarantee customers will be considered low risk if they pay their bills on and never exceed their credit limits, for any reason, like where they shop.

They can do this, but they can ask for, get our money, and then do not have to tell us how they spend it, and do not have to keep track of it.  These are the very same people who engaged in a Ponzi scheme to finance the housing market and engage in predatory lending to their consumers.  As if that was not enough, they also lobbied both Houses to tighten up bankruptcy laws, got it, and are now doing everything they can to continue raping their customers through their credit card rates, and credit limits on everyone, and not just those who are a high risk.  Hell, they are not just raping their customers; they are raping the American taxpayer because of their irresponsible behavior.  It is high time we brought back Robinhood, it is high time that the banks are held accountable for their practices.  They are owed money, but they are not owed everyone’s money, and they do not own us or anyone. 

On a personal note, I feel as if I do not have have enough holes to screw.

AP

Atlanta Journal Constitution

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2 Comments »

  1. The longer this goes on, the more Naomi Klein’s framework of shock-steal “disaster capitalism” fits. These busters stole the money and they are boldly telling us where to stick our best interests, since they already have our hard-earned taxes.

    Comment by ReyMac — December 23, 2008 @ 4:42 am

  2. […] Original post by BlogPulse Search Results for: finance […]

    Pingback by Finance Blog » Blog Archive » Bring Back Robinhood — December 23, 2008 @ 5:06 am


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