Tag: banking

Today’s blacklisted American: Cancelled by his bank for being pro-life, he started his own

12:10 pm

Banks blacklisting conservatives
What too many banks want to do to conservatives.

Today’s story is similar to my blacklist story two days ago about former national security advisor Michael Flynn [See the bottom of this post for an update on the Flynn story!]

Just as Flynn was blackballed by Chase bank, evangelist and motivational speaker Nick Vujicic found himself frozen out by his own bank because of his Christian, political, and pro-life beliefs.

Vujicic said he began to speak out against the innocent killing of unborn babies in March 2019. Within 16 weeks of doing that, he revealed, “we had a grenade at our house, a false magazine article published against me, a lawsuit threat, a spying drone, and a bank kicked me out.”

…”I got kicked out of a bank with no warning. They froze my credit cards, froze my debit cards,” he said. “They gave me a letter to say that they did a review of me as a client and they don’t want anything to do with me.”

What makes this story different from the Flynn story is that Vujicic responded by starting a project to found his own bank.
» Read more

13 comments

Today’s blacklisted American: Wells Fargo blacklists Republican candidates for Congress

1:11 pm

Wells Fargo bans Republicans
Wells Fargo: Republicans blackballed from having bank accounts.

They’re coming for you next: In the past week Wells Fargo has unilaterally shut down the bank accounts of two past Republican candidates for Congress, in one case stranding the individual on a trip with no cash.

In both cases the action was taken without warning in a manner that denied the individuals access to a large amount of their own cash. And though Wells Fargo gave no explanation for its action, both individuals strongly suspect it had to do with their political positions.

First conservative activist Lauren Witzke discovered that her Wells Fargo bank accounts had suddenly been shut.
» Read more

20 comments

Delusional banking

9:39 am

Time to consider holding more of your money in cash: The International Monetary Fund said on Sunday that it now supports the idea of imposing negative interest rates on depositor money at some central banks.

In other words, steal the money, placed originally in the banks for safety from theft.

The following quote from the article, however, reveals how truly hopeless the situation really is:

Critics argue that the move to negative rates, especially in Japan where the central bank has failed to ignite growth or shift inflation upwards, are a sign of desperation. What is needed they say is additional government spending instead of more loose monetary policy. In addition, they charge that the move may damage the economy by inflating financial market asset bubbles and squeezing bank profit margins. [emphasis mine]

The idea that more government spending will solve the problem of too much government spending, which is why these central banks are in debt and need to steal the money of the depositors in order to become solvent again, is absurd. That the world’s economic experts can see no other solution, like maybe getting government spending under control so that reasonable taxes can pay the bills, tells us that no reasonable solution will be tried, and that eventually everything is going to crash badly.

20 comments

Obamacare worked so well some Senators want to do the same for the real estate industry.

10:31 am

Obamacare worked so well some Senators want to do the same thing for the real estate industry.

Top Senate Banking Committee members released plans this week to wind down mortgage giants Fannie Mae and Freddie Mac and replace them with a complicated apparatus disturbingly similar to Obamacare. While the proposal by Senators Tim Johnson (D-SD), the chairman, and Mike Crapo (R-ID), the ranking member, was announced with great fanfare, it simply follows the outlines of another bipartisan bill, offered last year by Sens. Bob Corker (R-TN) and Mark Warner (D-VA). The idea is to get rid of the two government-sponsored enterprises (GSEs) that provide mortgage financing today for most American homes and replace them with a system of private lending with securities explicitly backed by the federal government.

In going through contortions to reinvent the housing finance system, the senators have avoided the obvious solution: keep the basic platform that has generally served American homeowners well but reform it to reduce risks. Instead, Johnson and the others have come up with a contraption that resembles the Affordable Care Act in its convolutions and its potential for unintended consequences.

Leave a comment

Another wave of mortgage loan defaults is about to hit.

9:09 am

The day of reckoning looms: Another wave of mortgage loan defaults is about to hit.

The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along. More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.

For a typical consumer, that shift can translate to their monthly payment more than tripling, a particular burden for the subprime borrowers that often took out these loans. And payments will rise further when the Federal Reserve starts to hike rates, because the loans usually carry floating interest rates.

Read the whole article. The possibilities, especially for some large banks like Wells Fargo and Bank of America, are not good.

Leave a comment

Chase Bank has told its business customers that there is now a limit on the amount that can be withdrawn from an account, while also banning all international wire transfers.

11:56 am

WTF? Chase Bank has told its business customers that they are placing a limit on the amount that can be withdrawn from an account, while also banning all international wire transfers.

If I had a Chase account, I would close it today, immediately, before these restrictions go into place.

4 comments

The Dodd-Frank downgrade.

10:11 am

The Dodd-Frank downgrade.

What comes through in the Moody’s assessment [the credit-rating downgrade of 15 banks] and in any review of their returns on equity is that banks have lost significant ability to generate earnings to offset the inevitable losses. The lost earnings power is surely due in part to reduced leverage, which helps protects taxpayers.

But 2,300 pages of Dodd-Frank and countless other federal efforts to put sand in the financial gears are also taking their toll. The Obama tax and regulatory frenzy, of which Dodd-Frank is a part, weighs on economic growth. Those are our words, not Moody’s, but the rating agency does note that the abysmal economic environment is a drag on ratings for everyone.

Leave a comment