One of the economic headlines in today’s WSJ was that the biggest bank’s
earnings report for the 4th quarter indicate they are lagging behind as the
economy gains steam. The article focused on the Big 4: Bank of America,
Citi, Chase and Wells Fargo. There was a quote in the article I have to
share with you:
“The disappointing earnings came despite the fact that, for both Citigroup
and Bank of America, it was a rare quarter when they announced earnings
without an accompanying legal settlement or some other bad-news development. To some investors, that signaled that the banks, which could once be counted on for high-flying returns, were turning into something more humdrum. ”
Well doesn’t that just say it all? “It was a rare quarter . . .” when there
was no announcement of a legal settlement. If you recall, BOA, in the third
quarter announced its $16.65 billion settlement with the U.S Attorney
General. The real headline here should be “Why do banks regularly have to
pay major legal settlements?” There is no logical explanation of how our
system has morphed itself to the point where fraudulent practices giving
rise to billion dollar settlements are an acceptable means of doing
business. Worse yet, when the perpetrators of such conduct are the largest
financial institutions in the world – where does that leave you and me?
It means we need to look out for ourselves. Bottom line: we must preserve
our future income for our families. To do that, attend our free seminars on
debt elimination as well as asset preservation for our elders. Sign up
And be sure to listen in on Saturdays from 8:30 to 10 AM on WDFN 1130 AM – on iHeart by CLICKING HERE– and watch the show on TV 20 on Sundays at 11 AM. Law and Reality is not just information – it’s entertainment!
Have a great week and please, don’t shed any tears for the banking industry!