In Shocking Move, Banks Pocket Cash Meant For Homeowners

  banksters

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?

 
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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]

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About the author

Kris E. Benson writes about politics for Wonkette and is pursuing a doctorate in philosophy. This will come in handy for when they finally open that philosophy factory in the next town over. @Kris_E_Benson

View all articles by Kris E. Benson

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118 comments

    1. mrpuma2u

      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.

  1. LibertyLover

    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?

  2. elviouslyqueer

    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).

  3. OneYieldRegular

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

    That's Wonkette Credit Union, right?

  4. Mumbletypeg

    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

  5. PuckStopsHere

    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.

    1. Biff

      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…

  6. weejee

    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.

    1. thatsitfortheother1

      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.

  7. memzilla

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

  8. Terry

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

  9. bureaucrap

    "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.

    1. memzilla

      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.

  10. Toomush_Infer

    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…

  11. actor212

    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?

  12. Buzz Feedback

    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.

  13. AngryBlakGuy

    …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.

  14. Come here a minute

    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.

  15. fuflans

    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.

    1. WhatTheHolyHeck

      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.

      1. MissTaken

        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.

        1. WhatTheHolyHeck

          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.

  16. Oblios_Cap

    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.

  17. mrpuma2u

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

    1. LibertyLover

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

      1. mrpuma2u

        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.

  18. ttommyunger

    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……..

  19. LibertyLover

    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.

    1. Yellerdawg

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

  20. Toomush_Infer

    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….

  21. BigSkullF*ckingDog

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

  22. proudgrampa

    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.

  23. SayItWithWookies

    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?

  24. prommie

    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.

  25. prommie

    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.

  26. Tio_Doidinho

    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.

  27. Chow Yun Flat

    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.

  28. owhatever

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

  29. bravo_sierra

    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?

  30. glamourdammerung

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

Comments are closed.