Big banks are operating as an 'oligopoly'

[Blue_Tires]

Jayne-Anne Gadhia, chief executive of Virgin Money, told a meeting of the Treasury Select Committee that the UK’s five biggest lenders had an “effective oligopoly” and said more needed to be done to improve competition.

“The consumer has not got much of a look in. The problem is that effectively with the oligopoly it was very difficult to get scale,” said Ms Gadhia.

Ms Gadhia added that consumers were "being misled" by big banks, but often stayed with them because of "brand loyalty".

Under repeated questioning from the MPs, Ms Gadhia declined to call for the forced separation of banks, but admitted that some form of break-up of the branch networks of the largest lenders could be good for customers.

The hearings also marked the first public appearance of Santander UK’s new chief executive, Ana Patricia Botín, who took over the running of the bank last month.


http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8266582/Big-banks-running-an-oligopoly-says-Virgin-Money-chief.html

[mmonk]

1. They are economic monopolies now with deregulation.

"Too big to fail" has failed us. Break them up and separate investment banking from banking again. No more derivatives, default trade swaps and "investor" collateralizing. No more CDO's.

[dkf]

2. Don't we have a ton of credit unions?

I really don't understand why we are in this situation.

[closeupready]

12. Problem is that frequently, you need to qualify under very special circumstances.

I know that if I had never been to college, I would not currently qualify to join ANY credit union.

And I only know about that college-affiliated credit union because I sought it out. Many people wouldn't think to seek out a credit union affiliated with their colleges.

[WatsonT]

3. What really pisses me off is that they are federally insured, in the US at least

but can gamble on the stock market.

Meaning they can take all our money, gamble with it, keep the profits and pass the loses on to us.

If you could go to vegas and were guaranteed to at least break even who wouldn't gamble?

[WinkyDink]

4. Again, foreign news is posted on DU as though it were U.S. news.

[Blue_Tires]

6. we definitely have similar (or worse) issues here

I posted it because it's unusual to see a big banker call one of their own out, and then to see it in a generally conservative paper...

[Octafish]

10. Here's a U.S. news source that has done an outstanding job of telling truth about TARP...

It's the World Socialist Web Site. A pertinent example:

Fed report reveals multi-trillion-dollar “shadow bailout”

By Andre Damon
3 December 2010

The US Federal Reserve on Wednesday posted details of its multi-trillion-dollar “shadow bailout” programs, showing that nearly every major US financial institution benefited from billions in unreported government loans.

The data from 21,000 Fed transactions carried out between December 2007 and July 2010 involves eleven special lending facilities set up by the US central bank at the height of the financial crisis to funnel trillions of dollars into large financial companies. The money was lent at close to zero interest with no strings attached. The banks and corporations on the receiving end of the massive bailout were not required to even report what they did with the government cash.

The vast scale of the bailout underscores the fraud of the endless claims that “there is no money” for jobs, mortgage relief or even extended unemployment benefits. The publication of the Fed data simultaneously with the refusal of Congress to extend long-term jobless benefits, Obama’s pay freeze for federal workers and the preparations to extend the Bush tax cuts for the rich while slashing social programs and tax benefits for the working class, highlights the naked class interests pursued by the government and both big business parties.

SNIP...

The total in outstanding loans at any one time from the Fed’s various bailout programs reached $3.3 trillion, or more than one fifth of the gross domestic product of the United States. The aggregate amount loaned out, however, is in the tens of trillions. The loans provided by the Term Auction and Primary Dealer Credit facilities alone added up to nearly $13 trillion.

CONTINUED...

http://www.wsws.org/articles/2010/dec2010/loan-d03.shtml

ABCNNBCSFixedNutNoiseworks, TIME, etc. failed to put the story into those words -- "The vast scale of the bailout underscores the fraud of the endless claims that “there is no money” for jobs, mortgage relief or even extended unemployment benefits."

Corporate-owned and controlled, America's mass media aren't really interested in an enlightening the population. After all is said and done, it's clear they're in the thought-control business.

[muriel_volestrangler]

11. Still, 'UK' in the first sentence meant no-one was under any misapprehension for long

It's not that much of a problem, is it?

[Fuddnik]

5. I just joined this class action against Wells Fargo.

They just plucked about $500 out of my pocket in one day.
--------------------------------------------------------------------------


I spent a good time last night, and all day today fighting and arguing with Wells Fargo over a forced place flood insurance policy, and why my mortgage payment, although early the entire payment went for interest.

Wachovia was actually a pleasure to do business with until they were bought by WF. So after fighting with these pirates all day, I sat down and googled "class action lawsuits against Wells Fargo".

Lookie what I found. I'm waiting for the lawyer to return my call.
--------------------------------------------------------------------------

Nichols Kaster Files Nationwide Class Action Against Wells Fargo for Allegedly Requiring Excessive Flood Insurance and Taking Kickbacks for Force-Placed Insurance
The lawsuit alleges that Wells Fargo purchased excessive flood insurance for Morris, accepted a commission for purchasing this unnecessary insurance, and then charged Morris for the favor.


Pittsburgh, PA (PRWEB) April 11, 2011

On April 7, 2011, Plaintiff Desiree Morris filed a class action lawsuit against Wells Fargo Bank, N.A. and Wells Fargo Home Mortgage, Inc., in U.S. District Court in the Western District of Pennsylvania. The lawsuit alleges that Wells Fargo purchased excessive flood insurance for Morris, accepted a commission for purchasing this unnecessary insurance, and then charged Morris for the favor. “Not only did Wells Fargo illegally buy the insurance, it took a commission for doing so,” said Plaintiff’s attorney Kai Richter.

According to the Complaint, Wells Fargo unlawfully required Morris to carry flood insurance in an amount nearly $100,000 greater than her loan balance, contrary to the terms of her mortgage agreement and federal law (which only requires borrowers to obtain flood insurance in an amount sufficient to cover their principal balance, where they live in a designated flood zone). Although Morris already carried flood insurance sufficient to cover her principal balance, the lawsuit alleges that Wells Fargo purchased a second policy for Morris’ property out of her escrow account, without her consent, at her expense. The lawsuit further alleges that Wells Fargo admittedly purchased this “force-placed” coverage through an affiliate insurance agency (Wells Fargo Insurance, Inc.), and reaped kickbacks, commissions, or other compensation for Wells Fargo and its affiliate insurance agency in the process.

In her class action Complaint, Morris seeks relief on behalf of herself and other borrowers across the country who have been similarly affected by Wells Fargo’s alleged conduct. Based on this alleged conduct, Plaintiff’s Complaint asserts that Wells Fargo violated the Truth and Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), and Pennsylvania Unfair Trade Practices and Consumer Protection Law (PAUTP-CPL). In addition, the Complaint alleges that Wells Fargo breached its contracts with borrowers and breached its fiduciary duties to borrowers in connection with the handling of escrow funds.

“In today’s economic environment, many homeowners are struggling to make their mortgage payments, and it is wrong for Wells Fargo to add to their burden by demanding excessive amounts of flood insurance that exceed Wells Fargo’s interest in their property, exceed federal requirements, and exceed the amount of insurance that borrowers agreed to carry when they originated their loans,” said Richter. “It is particularly egregious that Wells Fargo is accepting commissions or other compensation in connection with force-placed coverage,” continued Richter.

The case is entitled Morris v. Wells Fargo Bank, N.A., et al., No. 2:11-cv-00474-DSC (W.D.Pa.). Plaintiff is represented by Kai Richter, Paul Lukas, Michelle Drake, Rebekah Bailey, and Charles Frohman from Nichols Kaster, PLLP. Nichols Kaster has offices in Minneapolis, Minnesota and San Francisco, California, and is currently pursuing similar cases against JPMorgan Chase Bank, N.A. and Bank of America, N.A. Additional information is located at http://www.nka.com or may be obtained by calling Nichols Kaster, PLLP toll free at [phone].

###

------------------------------------------------------

OK, he just called me back. I'm faxing everything to them this evening.

[Octafish]

7. Big Banks used TARP to buy other big banks...

...which helps the few at the top at the expense of the millions below.

Sen. Bernie Sander is why we know the scale of the "situation": Fed Lifts Veil of Secrecy

[Kablooie]

8. I hate oligopolys because there's no way to explain a word that big to conservatives.

[malaise]

9. They told us they would

http://www.nealinc.com/michael_moore/Citigroup_Plutonomy_Leaked_Memo_Part1.pdf

http://www.nealinc.com/michael_moore/Citigroup_Plutonomy_Leaked_Memo_Part2.pdf