Still Paying the Price for Bank Misconduct
The price tag for global bank misconduct as it relates to the financial crisis is $5 trillion in lost lending, according to Bank of England Governor Mark Carney in an April 20, 2017 article by Greg Robb, Marketwatch.com. Consider the famous words of Everett Dirksen, former US Senator from IL, “A billion here, a billion there, and pretty soon you’re talking about real money.” Let’s talk about real money. Global banks’ costs of misconduct surpassed $320 billion, and according to Carney, that capital could have supported up to $5 trillion of lending to both households and to businesses.
In a time when there are global economic struggles, and entire countries are facing default, this reduction of capital is having a profound effect on economic growth. The banks are finally paying for their misconduct, but so, it appears is the entire world. Is it time to move forward? Is it time for the implementation of stricter banking regulations, or are all the recent regulations creating too large a price tag for our economy to bear?
Mark Carney would like to see the world leaders choose another path. In a recent statement, the BoE Governor asserted we stand at a crossroads, at which we may choose heavier regulation, slowing growth or we may consider trust with transparency: “The combination of robust international standards and greater trust as a consequence of transparent implementation and intensive supervisory cooperation can create a system of enhanced equivalence and mutual deference.”
If you feel confidence in the transparency of banking transactions – great – and most of us recognize the need for increased stable economic growth around the world. Still, in the U.S., banks have paid billions for wrongful foreclosures. Bank, lender and servicer misconduct has harmed many consumers, many of whom are still fighting to save their homes. So, is it over? Do we need to relax regulations on banks to allow growth in all industries, or do we need to fuel growth another way? Class action lawsuits against lenders seem to be diminishing, but lawsuits filed by individual homeowners can still achieve individual victories, saving individual homes.
If bank misconduct is still there, and it is still harming you, the next step is yours to take. Talk to a licensed professional in your jurisdiction. Contact us today.
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