$Billions$ in Welfare Go to Mega Banks Who Caused Financial Crisis

JPMorgan Chase, the largest bank in the world, made $36.4 billion in 2019. That was the highest profit of any bank in world history.  The news, reported Tuesday, sent the company’s stock up by 2 percent. In the fourth quarter of 2019, the company took in $8.5 billion, also a record, making it the tenth largest publicly traded company in the world, with a market cap of $437 billion.

JPMorgan Chase’s record profits were joined by “affiliate” Morgan Stanley, which also reported both record profits and record revenues for 2019, sending its stock price surging 6.6 percent on Thursday.

News of these record gains came as the six largest US banks revealed that they saved a combined $32 billion last year from President Donald Trump’s 2017 corporate tax cut. The tax windfall was up from 2018 for all but one of the banks. JPMorgan’s tax cut went from $3.7 billion in 2018 to $5 billion last year.

Two questions:

How much of that mostly untaxed profit came from illegal foreclosures in which it received directly or indirectly the money proceeds of forced sale of residential property without paying anyone who (a) had paid for the debt and who (b) therefore had any loss from the performance or nonperformance of any loan?

Even if everything the mega banks did was legal, why are they getting billions in corporate welfare while community banks get nothing except regulations that make their business more costly and less effective.

The big banks have a stranglehold on our government and our economy and virtually eliminated any meaningful competition from thousands of local and regional banks that could collectively or in smaller groups really compete.

All of the “services” of the larger banks can be duplicated by smaller banks but the smaller banks don’t have trillions of dollars stashed offshore to be repatriated as trading profits. They don’t get bailouts because they failed to do the one thing that the megabanks did: break the law. They can’t compete on loan rates because they don’t have the extra fees generated from stealing money from investors.

4 Responses

  1. @ Shakti Marquis ,

    Trump is working to end the FED, expect it to accelerate after 11/2020 , these bankers do not like him and do not support him. It hasn’t filtered down to us yet but he has been filling every court he can with constitutionalists . Be encouraged.

  2. Shakti Marquis- I believe that the percentage of Trump’s campaign contributions which come these banks is about the same as Obama’s, during whose presidency , and also Bush jr the whole scheme got underway.

  3. Anyone know what percentage of Trump’s campaign contributions are coming from these same banks?

  4. It is not surprising that JP Morgan continues to profit from the “shadow portfolio” of mortgage loans that it illicitly derived from the WAMU gift from the FDIC in September 2008 and the other banks it absorbed. JPMorgan is sitting on a treasure trove of mortgages that it did not pay value for. They have collected from insurance companies on “default” of some of these mortgages plus adding to their revenue from the “sham” foreclosure with the blessings and approval of our naïve courts.

    It is appalling that these courts rather being fair arbiters are simply allowing banks like Chase to rum amock “stealing” mortgages and investors fund will raking in the dough, like a cheap poker cheat.

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