The Phaserl


Major Problems Announced At One Of The Largest Too Big To Fail Banks In The United States

by Michael Snyder, The Economic Collapse Blog:

Do you remember when our politicians promised to do something about the “too big to fail” banks? Well, they didn’t, and now the chickens are coming home to roost. On Thursday, it was announced that one of those “too big to fail” banks, Wells Fargo, has been slapped with 185 million dollars in penalties. It turns out that for years their employees had been opening millions of bank and credit card accounts for customers without even telling them. The goal was to meet sales goals, and customers were hit by surprise fees that they never intended to pay. Some employees actually created false email addresses and false PIN numbers to sign customers up for accounts. It was fraud on a scale that is hard to imagine, and now Wells Fargo finds itself embroiled in a major crisis.

There are six banks in America that basically dwarf all of the other banks – JPMorgan Chase, Citibank, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs. If a single one of those banks were to fail, it would be a catastrophe of unprecedented proportions for our financial system. So we need these banks to be healthy and running well. That is why what we just learned about Wells Fargo is so concerning…

Employees of Wells Fargo (WFC) boosted sales figures by covertly opening the accounts and funding them by transferring money from customers’ authorized accounts without permission, the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and Los Angeles city officials said.

An analysis by the San Francisco-headquartered bank found that its employees opened more than two million deposit and credit card accounts that may not have been authorized by consumers, the officials said. Many of the transfers ran up fees or other charges for the customers, even as they helped employees make incentive goals.

Wells Fargo says that 5,300 employees have been fired as a result of this conduct, and they are promising to clean things up.

Hopefully they will keep their word.

It is interesting to note that the largest shareholder in Wells Fargo is Berkshire Hathaway, and Berkshire Hathaway is run by Warren Buffett. There has been a lot of debate about whether or not this penalty on Wells Fargo was severe enough, and it will be very interesting to hear what he has to say about this in the coming days…

Wells Fargo is the most valuable bank in America, worth just north of $250 billion. Berkshire Hathaway (BRKA), the investment firm run legendary investor Warren Buffett, is the company’s biggest shareholder.

“One wonders whether a penalty of $100 million is enough,” said David Vladeck, a Georgetown University law professor and former director of the Federal Trade Commission’s Bureau of Consumer Protection. “It sounds like a big number, but for a bank the size of Wells Fargo, it isn’t really.”

After the last crisis, we were told that we would never be put in a position again where the health of a single “too big to fail” institution could threaten to bring down our entire financial system.

But our politicians didn’t fix the “too big to fail” problem.

Instead it has gotten much, much worse.

Back in 2007, the five largest banks held 35 percent of all bank assets. Today, that number is up to 44 percent

Since 1992, the total assets held by the five largest U.S. banks has increased by nearly fifteen times! Back then, the five largest banks held just 10 percent of the banking industry total. Today, JP Morgan alone holds over 12 percent of the industry total, a greater share than the five biggest banks put together in 1992.

Even in the midst of the global financial crisis, the largest U.S. banks managed to increase their hold on total bank industry assets. The assets held by the five largest banks in 2007 – $4.6 trillion – increased by more than 150 percent over the past 8 years. These five banks went from holding 35 percent of industry assets in 2007 to 44 percent today.

Meanwhile, nearly 2,000 smaller institutions have disappeared from our financial system since the beginning of the last crisis.

So the problem of “too big to fail” is now larger than ever.

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9 comments to Major Problems Announced At One Of The Largest Too Big To Fail Banks In The United States

  • Stefan

    Michael, Are you thinking about what you write? You highlight the 6 largest banks in America, and note the dire straights we will be in if one of them fails. Then you say, “So we need these banks to be healthy and running well”.

    No Michael, no we do not need them healthy and running well. They are satanic entities who have created a global mess at the bidding of higher evil entities like Rothschild, Rockefeller, House of Windsor, and the Jesuits. And you want to keep these bastards alive?!!

    I don’t think so Mike. Get out of Babylon and get your head straight. Put your faith into spiritual things and not the makings of man. (like wells fargo) Knock off the fear pushing nonsense too. Let them fail, we’ll all get by just fine.

    • anon

      +1, Stefan: “Let them fail, we’ll all get by just fine.” Gee, whatever happened to good, old-fashioned BANKRUPTCY? Oh, that’s right, the Western International Central Bankers (self-proclaimed “Jews”, like Rothschilds, and those BEHIND the Rothschilds) have an AGENDA. And, that AGENDA calls for assisting ONLY those who pledge absolute loyalty and conformity to that AGENDA. What, exactly, is that AGENDA?

      “From its inception, the alliance of the Illuminati (Weishaupt, May 1, 1776) and the Freemasons had a clearly defined program: (1) abolition of all ordered government; (2) abolition of private property; (3) abolition of inheritance; (4) abolition of patriotism (5) abolition of all religions; (6) abolition of family, morality, and control of education of children; (7) creation of a world government.” From THE CURSE OF CANAAN, by Eustace Mullins, pg. 64 NOTE: To which I would add, (8) War, profits from war, and (9) Global depopulation – INCLUDING IN THE UNITED STATES.”

      And, 10) ORDO AB CHAO. (Further consolidation of control by obscenely wealthy “Jews”)

      “We shall have world government, whether or not you like it. The only question is whether world government will be achieved by conquest or consent.” — James Paul Warburg, of the Warburg Family (descendants of the 16th Century, Venetian “Del Banco” Family), Foreign agents for the Rothschild Dynasty, and primary actors in the creation of the so-called “Federal” “Reserve” on Dec. 23, 1913 (speaking, on February 17, 1950, before the U.S. Senate)

      “We Jews regard our race as superior to all humanity, and look forward, not to its ultimate union with other races, but to its triumph over them.” (Goldwin Smith, Jewish Professor of Modern History at Oxford University, October, 1981)

      Source: 1001 Quotes By and About Jews (mainly on the topic of Jewish Supremacism)

      • Stefan

        OK – Let’s see what Solomon has to say about your reply:

        For through the multitude of trial a dream comes; and a fool’s voice is with a multitude of words. (Septuagint version)

        Too much planning and scheming, you won’t sleep well: Too many words and you make yourself a fool.

        Let them fail, they are going to anyway.

        • Craig Escaped Detroit

          Too many words are often just a smoke screen, camouflage, BS.

          The “one word test” (to determine lies or truth) from an episode of “Dr. Who”.

          If you ever watch (or have already seen the Dr. Who episodes, then you were blown away by the response “POND”.)
          Clara was describing something dangerous in a frozen pond, but…
          …It just happens it was the name of a close companion of the doctor who was recently lost.

        • Ed_B

          I especially like “Too many words and you make yourself a fool”. Amen to that. Two other quotes that I like in this area are:

          1) “It is better to remain silent and be thought a fool than to open your mouth and remove all doubt”.

          2) “A wise man speaks because he has something to say, while a fool speaks because he has to say something”.

  • MarcS

    OK, so wells fartgo gets fined 185 million plantation dollars.

    Where will the dollars go? Will they be given to the customers who were cheated?

    Of course not, it will go into the hands of the usgov which in turn will give it back to the usfedreserve, where the plantation dollars were printed out of thin air (or more precisely computer entries).

    One big circle jerk. And the zombies will be paying for this one too.

  • Craig Escaped Detroit

    I think Mike has to keep paying his bills and that he gave up his lawyer job to work the website full time, so he has to keep the “click bait” pouring out at full speed to make that money.

    And it strongly appears that his religious belief system restricts & modifies the way his mind interprets what he observes in the world.

    When the only tool in your kit is a HAMMER, then every problem looks like a NAIL.

    It’s hard & disturbing to begin to honestly question one’s own belief systems, and we have a tendency to want to have everything explained to us in terms that we can accept and not have to look at it any harder. Religious systems fill those needs very well, but then, when you start to analyze those old “books” TOO closely and ask TOO many questions, then you’re back to square ONE again when you begin to question all the contradictions, etc. You start to come up with more and more complicated excuses & apologies until you have to start covering your ear and close your eyes and go “Nah nah nah, I cannot hear you, go away, leave me alone.” (just like a little kid.)

    With Bo-Polny, he’s got it really bad for creating formulas and trying to put together numbers, seasons, and “times” from various parts of the bible and make the stock markets and western calendars all fit some kind of predictive formula.

    We’ve been piling up the manure for more than 2000 years, and still waiting for results.

    • Ed_B

      “It’s hard & disturbing to begin to honestly question one’s own belief systems, and we have a tendency to want to have everything explained to us in terms that we can accept and not have to look at it any harder.”

      Agreed. This is the source of the now infamous “normalcy bias” that afflicts the non-prepper / non-stacker world around us. The truth is out there. It’s available for anyone who desires to know it. But some simply refuse to acknowledge that it exists because it lies outside their comfort zone. Oh, well. The truth does not care if it is upsetting to some. It is what it is.

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