If you thought the TBTF banks couldn’t stoop any lower, think again. If this doesn’t prove without a shadow of a doubt that the more you coddle and bailout the big banks, the more brazen, criminal and out of control they become. I guess entering the slumlord business and running the food stamp programjust wasn’t good enough. In their latest scheme, we find that JP Morgan (of course), Bank of America and Wells Fargo (Uncle Warren’s pet) are at the center of what can only be called a global loan-sharking business that prays on destitute American citizens. Basically, the way the scam works is payday lenders set up shop overseas in locations such as Granada, Belize or the Isle of Man in order to avoid various state laws against payday loans. The key link in the chain are the TBTF crony banks who process the loans and facilitate the interest charges, which can be well over 500%. So what’s in it for the banks? Huge fees of course. Absolutely disgusting, but par for the course for these guys. From the New York Times:
Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.
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2 comments:
Why not? If I could I'd start a payday loan business. It's legalized loan sharking!
Greed is good.
Remember -- your "leaders" in Congress, our "representatives", made all this possible with the laws they passed after being bribed and influenced by the revolving door of Wall Street and the federal Treasury Department. That's them, all right. looking out for us (we, the people). These schemes are outlawed in several states because they have been deemed legal loansharking. Bribery works wonders. Quite obviously, to everyone but the FBI, Homeland Security, the Treasury agents, and the IRS. They are too busy with dinosuar bones and checking to make sure you or I didn't miss $50 on our taxes.
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