BANKSTERS  10:30 am October 15, 2012

In Shocking Move, Banks Pocket Cash Meant For Homeowners

by Kris E. Benson

ben bernanke, thinking In a move that your Wonkette finds SHOCKING, just SHOCKING, major banks have decided not to lower home loan interest rates for customers, even though the federal funds rate is hovering at around zero and banks are making a killing on mortgages.

JPMorgan Chase and Wells Fargo, the nation’s largest mortgage lenders, said Friday they won’t make home loans much cheaper for consumers, even as they reported booming profits from that business. Those bottom lines have been padded by federal initiatives to stimulate the economy. The Federal Reserve is spending $40 billion a month to reduce mortgage rates to encourage Americans to buy homes. Instead, its policies may be generating more benefits for banks than borrowers.

WHAT A SURPRISE that QE3 and similar policies just benefit the banks at the expense of homeowners and Poors, as predicted by such venerable institutions as the Bank of England, the Bank of Japan, and Wonkette.

“The government can’t force banks to give out loans at lower rates any more than they can force Macy’s to sell me sheets for a dollar,” said Karen Shaw Petrou, managing partner at consulting firm Federal Financial Analytics. Since the Fed announced its mortgage initiative, rates have ticked down. But banking analysts say the cost of issuing the loans has fallen much more, significantly boosting bank profits.

Well, since the banks are making so much money, can they just make a tiny bit less by issuing loans at lower rates? No, dummy, they cannot just make a tiny bit less, what are, are you a pinko communist, like our communist Kenyan president?

Timothy Sloan, chief financial officer at Wells Fargo, said on a conference call with analysts Friday that lowering prices would not be “a good decision from a profit standpoint…We don’t run the business based upon [market] share; we run the business based on profitability.”….One official added that he even expects mortgage rates to rise next year.

[...]

The reason why mortgage bankers are seeing so much green is that the gap has widened between what banks charge a homeowner in interest rates and what they must pay those who finance mortgage lending. The latter has dropped significantly, largely as a result of the Fed’s actions, analysts said...“Banks are in the business of making money and are not going to cut their profit margins for the social good,” said Paul Miller, a former examiner with the Federal Reserve Bank of Philadelphia and an analyst at FBR Capital Markets.

You heard it here first: “banks are in the business of making money.” Maybe write that down and send it in a letter for Ben Bernanke to consider for the next time he gets a hankering to make economic policy.

[Washington Post]

 

Hola wonkerados.

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{ 118 comments }

TootsStansbury October 15, 2012 at 10:35 am

Now THIS shit right here is riot-worthy.

mrpuma2u October 15, 2012 at 11:01 am

All too true, but uh-MEHR-kins are fair weather rioters. The only thing you can 70k rabid screaming people together for this late in the year is football and baseball playoffs.

LibertyLover October 15, 2012 at 11:03 am

1st world problems.

eggsacklywright October 15, 2012 at 11:20 am

Damn Bentley wouldn't start this morning. What a pain.

LibertyLover October 15, 2012 at 10:35 am

If banks are so interested in making money, why don't they charge each other any interest when they loan each other money? Why do they only charge real people interest? I thought banks were people, too?

Biff October 15, 2012 at 11:51 am

Maybe they make it up on volume?

ChrisM2011 October 15, 2012 at 10:35 am

I usually get kissed before I get fucked.

Toomush_Infer October 15, 2012 at 10:45 am

Oh, you lucky ducky – quitcher braggin'!…

FNMA October 15, 2012 at 10:48 am

Kissing is extra.

YouFail4eva October 15, 2012 at 11:20 am

$10,000 extra. An additional 5000 if you want your pillow fluffed.

Esteev October 15, 2012 at 10:57 am

That's called "love".

Not_So_Much October 15, 2012 at 11:09 am

You're lucky none of them are stabbing you in the neck.

elviouslyqueer October 15, 2012 at 10:36 am

We don’t run the business based upon [market] share; we run the business based on profitability."

Translation: Fuck you, poors and middles. We will fuck you long time (and there's not a goddamn thing you can do about it).

Esteev October 15, 2012 at 11:05 am

"A thank you would be nice," replied the banks.

OneYieldRegular October 15, 2012 at 10:37 am

"…as predicted by such venerable institutions as the Bank of England, the Bank of Japan, and Wonkette."

That's Wonkette Credit Union, right?

HistoriCat October 15, 2012 at 2:26 pm

I would like membership in that CU!

sbj1964 October 15, 2012 at 10:38 am

Banks make money the old fashion way,by fucking people over.

natl_[redacted]_cmdr October 15, 2012 at 10:39 am

Yes, but did they stab anyone?

BornInATrailer October 15, 2012 at 10:47 am

Not that it would matter in the long run (as long as the stabbee is Muslin-y).

Esteev October 15, 2012 at 11:18 am

You don't need a knife to stab someone, apparently.

Mittaplasia October 15, 2012 at 12:00 pm

It's more like death from thousands of tiny paper cuts.

Mumbletypeg October 15, 2012 at 10:39 am

ALT ALT-TEXT: "think think, think, think think"

Bernanke's expression is one that would fit bloated bankers or Pooh-bears: always ready to get paws sticky with the next munny pot

Esteev October 15, 2012 at 11:08 am

But at least he looks concerned!

eggsacklywright October 15, 2012 at 10:39 am

Venal, greedy, corrupt sunsabitches.

PuckStopsHere October 15, 2012 at 10:39 am

Fine. Let them foreclose on my now-worth-40% less-than-it was-when-we bought-it-home and let them eat the loss. Fine.

Biff October 15, 2012 at 10:48 am

Shyeah, I wish! I have no mortgage to foreclose on, so mine is a real loss, not just on paper. Can't even give it away…

weejee October 15, 2012 at 10:43 am

This just follows the douchiness that is inherent in conservtards. It's like Congressaldouchebag Darrell Issa pissing & moaning about the lack of security for the CIA compound in Bengheyzi that he outed, while a few months before the same Issa the pissah voted to cut a half a $ billion from the State Department security budget. All these f**ks had shame surgically excised at an early age.

thatsitfortheother1 October 15, 2012 at 10:54 am

I'm wondering why the righties expect somebody in a Dem administration to let them have a look at any smoking gun that might possibly exist. It ain't easy being a conservatard.

LibertyLover October 15, 2012 at 11:19 am

But, But, But, Democrats voted for it toooooo.. Whaaaaa!

SorosBot October 15, 2012 at 10:43 am

Hey that's my bank! Greedy fuckheads.

Chow Yun Flat October 15, 2012 at 10:43 am

I knew QE3 wouldn't work. Those royals screw it up every time.

memzilla October 15, 2012 at 10:44 am

I wish to rinse my hands in bankers' blood. Only figuratively speaking, of course… only figuratively.

actor212 October 15, 2012 at 10:46 am

What if we sliced them up with votes?

eggsacklywright October 15, 2012 at 10:44 am

There's a reason Holder's department is called Just-us.

EatsBabyDingos October 15, 2012 at 10:45 am

If you see a banker on a skateboarder, shoot him (a kabillion bucks)

Love, Ben.

freakishlywrong October 15, 2012 at 10:45 am

We should start carving "A"s in to banksters bald, shiny entitled pates.

Biff October 15, 2012 at 10:46 am

Never saw that coming…

Esteev October 15, 2012 at 11:01 am

See what? I don't see anything!

Biff October 15, 2012 at 12:33 pm

Are you Esteev from the John Larroquette Show?

actor212 October 15, 2012 at 10:46 am

Wow, I'm shocked that people who's only thought is how to profit when people suffer would try to profit from people suffering!

Terry October 15, 2012 at 10:46 am

But remember, bankers are job creators. You have to let them have all the money so things can trickle down.

Biff October 15, 2012 at 11:57 am

Time for a big-assed bank job, then.

bureaucrap October 15, 2012 at 10:46 am

"The government can’t force banks to give out loans at lower rates any more than they can force Macy’s to sell me sheets for a dollar,” said Karen Shaw Petrou, managing partner at consulting firm Federal Financial Analytics."

Actually, Ms Petrou, they can. And should.

memzilla October 15, 2012 at 10:58 am

Inasmuch as there has never been a Federal bailout of the sheetmaking industry paid for with our tax munniez… YER G-DDAM RIGHT THEY SHOULD.

kittensdontlie October 15, 2012 at 10:47 am

That stink of collusion, an anti-trust violation, is in the air.

Boojum October 15, 2012 at 11:33 am

My thought exactly.

Toomush_Infer October 15, 2012 at 10:47 am

Hey! Take your two beans out of the bank and put mama and papa bean in your credit union…..if you have any other beans somewhere, option out of bank funds….write a letter to your former bank telling them what you did and why….I haven't heard back yet, but I feel peachy…

Biff October 15, 2012 at 11:59 am
actor212 October 15, 2012 at 10:48 am

Timothy Sloan, chief financial officer at Wells Fargo, said on a conference call with analysts Friday that lowering prices would not be “a good decision from a profit standpoint…We don’t run the business based upon [market] share; we run the business based on profitability.”….

And Mitt Romney never fact checks, either. Coincidence?

Esteev October 15, 2012 at 11:03 am

What are these "facts" you speak of?

actor212 October 15, 2012 at 11:15 am

Stupid things with a liberal bias.

Esteev October 15, 2012 at 11:17 am

You know who else has a liberal bias?

actor212 October 15, 2012 at 11:21 am

Um, me?

ManchuCandidate October 15, 2012 at 10:48 am

The Invisible Hand flips the bird to people who seem to be well meaning but naive about human nature.

Esteev October 15, 2012 at 10:55 am

The Invisible Fisting is now clearly visible.

Buzz Feedback October 15, 2012 at 10:49 am

Attn Wells Fargo: My little community bank out here in the sticks gives out free rifles with every new account. Just something to think about.

AngryBlakGuy October 15, 2012 at 10:50 am

…wow, this is about as awkward as running into your ex a year later and she it with another guy, but she is still wearing jewelry that you bought her.

Toomush_Infer October 15, 2012 at 10:58 am

I'm so sorry….

Come here a minute October 15, 2012 at 10:52 am

Banks are people too, my friends; they are the kind of people whose misfortunes make you smile and whose deaths make you dance with glee.

Geminisunmars October 15, 2012 at 11:07 am

Schadenfinancials.

fuflans October 15, 2012 at 10:53 am

please. next you'll be telling us joe the plumber isn't a plumber, sarah palin is writing a fitness book and we are being overrun by sexy brazilians.

eggsacklywright October 15, 2012 at 11:05 am

Those Brazilians wax and wane. Can't explain it.

Chet Kincaid_ October 15, 2012 at 10:54 am

Quick Googling shows interest rates in Illinois are in the 2%-3% range. Kill the bankers and everything, but that's the lowest I've seen in my lifetime.

WhatTheHolyHeck October 15, 2012 at 11:03 am

That's what they're advertising. I have a killer credit score and I didn't get that for my last refi a month ago. It's all bait and switch.

MissTaken October 15, 2012 at 1:12 pm

One dude I work with just qualified for a fixed 30-year at 3.45%. Then again, he did put 50% down with money he borrowed interest-free from mommy and daddy so I guess Romney should be President after all.

WhatTheHolyHeck October 15, 2012 at 3:28 pm

I managed to slice 10 years off our 30 to make it a 20 and ended up somewhere around 3.25, which costs me maybe $40/mo more. I really can't complain much.

Biff October 15, 2012 at 12:02 pm

All for naught, if other banks are the only "people" who can qualify…

Esteev October 15, 2012 at 10:54 am

The Free Market isn't free. But we are!

ifthethunderdontgetya October 15, 2012 at 10:56 am

Just more foam for the runway…The Bankster Runway.
~

Biff October 15, 2012 at 12:03 pm

Is this the new metaphor for greasing the skids?

Oblios_Cap October 15, 2012 at 10:59 am

Banks are in the business of making money and are not going to cut their profit margins for the social good,”

They aren't going to do anything for the social good. What a bunch of useless fuckers.

Esteev October 15, 2012 at 11:00 am

It's all for the socialite good.

hagajim October 15, 2012 at 11:45 am

Perhaps they ought to be "made" to do things for the social good.

mrpuma2u October 15, 2012 at 11:00 am

Rapacious lampreys have no ethics? Ya don't say… fuck these greedy scumbags with votes and hopefully subpoenas.

LibertyLover October 15, 2012 at 11:05 am

Had to upfist you for the use of lampreys. Haven't thought about them in a long time. A very good reference, indeed.

mrpuma2u October 15, 2012 at 11:44 am

Thanks. Lampreys, hagfish, leeches, these are all animals that come to the forefront of my mind when I think of big bank CEOs. It just makes sense to me.

Biff October 15, 2012 at 12:05 pm

Also, eels. Slippery, slimy, eels.

ttommyunger October 15, 2012 at 11:00 am

Make hay while the Sun is shining, boys….if Barry wins, if he grows some balls, if he gets a majority in BOTH Houses, if Frogs grew wings, if……..

ChillBill October 15, 2012 at 11:01 am

The problem of course, it's all that goddamn regulation.

Esteev October 15, 2012 at 11:08 am

If only there were more poors to exploit…

FlownOver October 15, 2012 at 11:25 am

Stand by.

Esteev October 15, 2012 at 11:39 am

It won't be long now…

LibertyLover October 15, 2012 at 11:02 am

According to Rep. Broun, we are supposed to use the Bible as our guide in this country. Why, then, do usary fees exist in the first place when they are clearly preached against in the Bible?

[Ezekiel 18:17] He withholds his hand from sin and takes no usury or excessive interest.

Esteev October 15, 2012 at 11:13 am

That part of the Bible has been redacted.

Toomush_Infer October 15, 2012 at 11:25 am

That's in the Muslin part of the Bible…

LibertyLover October 15, 2012 at 11:59 am

Interest of any kind is forbidden in Islam.

Maybe that's why…

Yellerdawg October 15, 2012 at 12:25 pm

It's because this Country was founded on CHRISTIAN AMERICAN VALUES and SHUT UP! That's why. And Freedom. Also.

Toomush_Infer October 15, 2012 at 11:03 am

This isn't where the greed comes in. Corporations only robotic moral compulsion is to "make money", followed by a distant second commandment, "legally, if possible"…..it's in the boards and executives willing to pay themselves huge, unwarranted sums out of investor's shares, profits or not. This is what made Romney's pirate operation so successful – buy their votes, force the companies to take on debt, parachute out their execs, bankrupt the companies and roll in the liquidation assets……fucking the workers and small stockholders is just a pleasant aftertaste….

216stitches October 15, 2012 at 11:06 am

Nice title.

BigSkullF*ckingDog October 15, 2012 at 11:07 am

I think bankers will become much more interested in the social good when I start poking them with my pitchfork.

actor212 October 15, 2012 at 11:13 am

…of votes. Pitchfork of votes

starfanglednut October 15, 2012 at 11:27 am

I'm right with ya, bsfd.

proudgrampa October 15, 2012 at 11:08 am

Time for a little Tracy Chapman:

"Talkin' Bout A Revolution"

Don't you know
They're talkin' bout a revolution
It sounds like a whisper
Don't you know
They're talkin' about a revolution
It sounds like a whisper

While they're standing in the welfare lines
Crying at the doorsteps of those armies of salvation
Wasting time in the unemployment lines
Sitting around waiting for a promotion

Poor people gonna rise up
And get their share
Poor people gonna rise up
And take what's theirs

Don't you know
You better run, run, run…
Oh I said you better Run, run, run…
Finally the tables are starting to turn
Talkin' bout a revolution

Fuck the banks. Fuck the Rethuglicans. Fuck Wall Street.

To be clear, Tracy did not say, "Fuck the banks. Fuck the Rethuglicans. Fuck Wall Street." That was my contribution.

eggsacklywright October 15, 2012 at 11:08 am

You know who else demands an exorbitant vig…

weejee October 15, 2012 at 11:23 am

Jake "Greasy Thumb" Guzik, Al Capone's banker?

Incitefully_Joe October 15, 2012 at 11:17 am

See, THIS is pretty much exactly why we should have just dropped cash from helecopters

LibertyLover October 15, 2012 at 11:21 am

…but not live turkeys. Never live turkeys. ;-)

FlownOver October 15, 2012 at 11:38 am

Quicker, but only because re-learning that html link thing every time takes longer.

Biff October 15, 2012 at 12:09 pm

Frozen ones hurt like hell, though!

shelwood46 October 15, 2012 at 1:13 pm

God as my witness, I thought turkeys could fly.

FlownOver October 15, 2012 at 11:36 am

Or at least turkeys.

Biff October 15, 2012 at 12:11 pm

Oh the humanity!

SayItWithWookies October 15, 2012 at 11:19 am

Gee, you'd think a company like Wells Fargo, that was getting sued by the Fed for mortgage fraud, would be a little more circumspect about their desire to rake it in with as much predatory glee as possible.

Wells Fargo lied about the quality of thousands of loans it certified for a federal insurance program, a decision that ultimately cost the government $190 million in claims when those loans failed, according to a civil lawsuit filed by federal prosecutors on Tuesday.

Then again, legality is for sissies, right?

RawhideRawlins October 15, 2012 at 11:24 am

Maybe if we stopped doing business at the banks…

prommie October 15, 2012 at 11:25 am

If your website ain't got Mojo Nixon, then your website could use some fixing: http://www.youtube.com/watch?v=bMehSfTmnbY

I hate banks…
I just can't stand 'em.
Gimme a shovel & man I'll plant 'em.
Six feet under thats where they belong…
I hate banks is the name of this song.
I think I'll rob myself one or two…
Yeah I hate banks, yeah, how 'bout you?

Well…lend me a nickel & lend me a dime,
repossess my house any old time.
Financial institutions think they're so high faluting…
Just a bunch of fruits in three piece suits,
trying to steal all my loot.
Things are smelling pretty rank,
We must be near a stinking bank.
Smells worse than Rockefellars feet,
Wall Street can eat my meat.

eggsacklywright October 15, 2012 at 11:26 am

Too bad Gotti didn't live a little longer. His business has become legal.

prommie October 15, 2012 at 11:27 am

Mojo, Mojo, Mojo:
Well,when I walk in they treat me like a dog;
want to hit them in the head with a doo-doo log.
Republicans, one and all…
Their talleywhackers are mighty small.
Stealing from the poor gonna give to the rich…
Wanna make the bank president twitch in a ditch.

Tio_Doidinho October 15, 2012 at 11:30 am

Count me as one of the casualties of the Great Brazilian Telenovela Clusterfuck of 10/12. My user name is dirty Portuguese and was therefore blocked from Wonkette.

In retaliation, I've put a Candomblé hex on Rebecca; starting tomorrow morning, her crotch will spontaneously self-Brazilianize once a day for the next six years. You have all been warned.

mbobier October 15, 2012 at 11:32 am

It's always SUCH a surprise when greedy plutocrats act like greedy plutocrats….

barto October 15, 2012 at 11:56 am

Another bone-headed supply-side solution. Why are these people considered smart?

Fred_Wertham_Jr October 15, 2012 at 12:05 pm

Unless they're colluding and price-fixing, banks would maximize profits by lowering rates and making more loans. Unless they're colluding and price-fixing.

CommieDad October 15, 2012 at 3:48 pm

Excellent point.

Chow Yun Flat October 15, 2012 at 12:26 pm

The Fed hands truckloads of money to huge banks with no restrictions on its use. The banks use the free capital to punch up their profits.

No one would expect anything different.

owhatever October 15, 2012 at 12:31 pm

I suggest lending to the banks now with loan-shark tactics, using Seal Team 6 as our leg-breaking enforcers.

bravo_sierra October 15, 2012 at 12:46 pm

I actually don't have too much problem with banks acting like greedy parasites. That's what corporations do. We shouldn't just hope they decide to be nice to us every once in a while at the expense of their profits. My rage is directed to the government and regulatory agencies that allow this behavior. "Here is a very, very nice low interest rate, could you please, pretty please, pass this along to your customers?" Huh? How about some good old fashioned carrots and sticks?

HistoriCat October 15, 2012 at 2:34 pm

"No carrots. No sticks" – Boehner and McConnell.

glamourdammerung October 15, 2012 at 3:27 pm

If only there was some way to make this impact NFL games so that Americans would care enough to do something about it.

Esteev October 15, 2012 at 11:24 am

LOL! Next you'll say you're "thoughtful", too.

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