ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Banks can't be trusted

Updated on July 5, 2012

Banking is Supposed to be Boring, dammit!

The leading sign that our economy is struggling is the news, and what's in the news. I don't mean the dire reports of unemployment at new highs. I mean the news is all about banks. It's hard to escape the news about banks in crises, banks behaving badly, or banks firing chairmen for investing money badly. What's worst of all is the rampant corruption and bid-rigging that is festering like a wound across all the cash-strapped municipalities that have been quietly stolen from for decades. Seriously, banks are some evil stuff right now. How can our global economy produce the economic viability our communities desperately need when every step of the way we are hampered by bad behavior of the highest order by these legalized cartels?

Ask yourself this: Do these huge banks provide better service than a local community credit union? For the mast majority of banking consumers, the answer is no. Credit Unions are the only financial institution most of us require. The only real advantage to a nationalized bank I can see is the ATM fees saved by folks who have to criss-cross the country for their work. But, even then there are credit unions that reimburse ATM fees that would be better for qualifying people.

And, one thing that sticks out in my mind: Banks are all over the news. Credit unions are not.

Did you hear about the Barclay's Scandal?

The entire eurozone crises could be an artificial construct of the Barclay's rigging of the Libor interest rate. The Libor rate is a big deal, and it is possible that this whole mess is not due to Greek taxpayers, or austerity measures, or any other measure. How important is this index? Consider how much money was removed from the European economy as a result of rigging this figure. After a 500 billion pound bailout by the Scottish government, the CEO was concerned his private, for-profit bank would be nationalized. As part of making his bank look good, he and his top men rigged the LIBOR interest rate, low-balling it to artificially reduce the amount of interest the banks had to pay out, and increasing their revenues. Where does the money go when it is paid out? That should be pretty obvious. By rigging the interest rate low, hundreds of billions more dollars were removed from the economy. The Eurozone crisis, as it currently stands, is likely being pushed downward in part from the corrupt extrication of dollars that people and governments didn't even know they were owed due to the low-balled Libor rate. A perfect crime, stealing what people don't even know they are owed, if you can get away with it. Fortunately, Barclays was caught red-handed. The CEO's ousting is only the beginning. Personally, I hope there will be criminal prosecution at the highest levels. I have family in Europe. They deserve justice.

Bidrigging, you say? They do that in America, too. Banks have been shorting municipalities out of trillions of dollars for decades!

The biggest news in America should, by all rights, be the massive, staggering, jaw-dropping theft that occurred at the highest levels of the banking sector. It boggles me that a crime of this magnitude, with such far-reaching effects, is crowded out by the non-news of things like Anderson Cooper's private life, or the latest gaffe from politicians.

Here's the thing: The true cost of bidrigging will never be known, and can never be known. We never knew what we, as a nation, did not have. Our municipalities lost funds that they never knew they were owed. The massive fines paid by the banks involved in the scandal are a speck compared to the true cost to the taxpayers and general public that these illegal actions generated. And, unfortunately, heads are not rolling. A few minor players are going to prison, but they won't be there long, and ultimately, the true directors of this mess will walk away unhindered, untouched, and rich as thieves.

When the defining line between banking and organized crime is that mobsters are Italians, and bankers are not, there's a real problem in the banking industry.

The Mortgage Crisis Was Just the Beginning

The crisis that spawned all these implosions was the mortgage disaster that nearly brought the world economy to its knees. There are still fallouts and problems. Bank of America owes millions for robo-signing. This was old news, but it is frightening how common this thing is. Recently, J. P. Morgan's loss of billions of dollars inexplicably, and unexplained, hints at a level of corruption that is beyond the pale. Where did this money go? How could anyone overseeing this not be more involved and more aware of what was happening? What really happened inside J. P. Morgan to let such a huge loss happen? Investigators are investigating, but ultimately the corruption runs too deep. High-level bankers become regulators as a way to get to be higher level bankers. There is a revolving door between business and regulation such that no one has any vested interest in allowing these behemoths to fail.

Let them die. Tear them down. The world needs more credit unions, not more financial derivatives traders.

I am a card-carrying Republican

Look, I don't like the idea of government regulation any more than the next Republican. In fact, I hate it. I hate the idea that we have to pay to oversee adults engaged in free market enterprise.


I don't see why corporations with money and power get a free pass to operate a cartel skimming the global economy and bribing politicians through SuperPACs. The "Too-Big-to-Fail" banks are a mess. I agree with the former CEO of Barclay's, that he feared nationalization. It would be just as bad to nationalize the banks, and make this corruption even harder to locate inside the bureaucracy of government power.

The solution is simple: credit unions for consumers, and businesses. As a consumer I would never trust my business and money with anyone but a reputable credit union. Businesses should form their own credit unions. Different market sectors have different credit unions, and there's a limit to how big they can get. The credit unions hand back profits to their shareholders who also happen to be their customers. It's a proven business model, and a proven way to prevent the corruption and greed that can take over large institutions, turning them into shadow governments no better than a DnD thieves' guild.

If I don't trust big government, why would I trust a big shadow government?


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)