Executive Summary Shadow banking is even more corrupt than normal megabank banking and it is a major risk to the banking system. Introduction The lack of coverage of shadow banking is a serious issue with understanding private banking. More and more banking is moving away from transparent companies and into the opaque world of shadow…
Executive Summary Banks continually increase their size through acquisitions. Introduction Large private banks are perpetually either buying smaller banks or supporting legislation that will make it more difficult for smaller banks to stay independent. One example of this is Basel III, which is promoted by the BIS, and its primary intent is to increase costs…
Executive Summary Blockchain has been leveraged by financial entities to record banking transactions. Introduction How blockchain is integrated into finance is covered in the following quotation. Banking has become so ridiculously opaque that blockchain, a public and uncontrolled online register has been proposed as a way to provide better accounting. This is covered in the…
Executive Summary The big six banks are in total control over the regulatory apparatus and the Federal Reserve and US government bailouts. Introduction The six largest banks (JP Morgan Chase, Citigroup, Goldman Sachs, Wells Fargo, Bank of America and Morgan Stanley) controlled 70% of the financial assets in the US in 2017.
Executive Summary The point of payday loans is for the borrower to never pay off the loan, but to roll the loan. Introduction Rolling over a loan is when the loan cannot be repaid and is “rolled” in a larger loan and the payment deferred. Rolling over loans can be a legitimate way of dealing…
Executive Summary Old fashioned banking is banking that covers the basics for customers rather than esoteric scams, which is what modern banking is all about. Introduction Old-fashioned banking is explained in the following quotation. Old fashioned banking is the deragatory term used by private banking interests to describe low margin banking services like check cashing…
Executive Summary Capitalist banking uses the credit of the government and privatizes the gains while not being responsible for losses. Introduction While we named the hypothesis, there is literature that discusses parasitism of the banking and finance and insurance sector, the so-called FIRE sector on the normal economy, and skepticism around banking and bankers is…
Executive Summary Capitalist banking uses the credit of the government and privatizes the gains, while not being responsible for losses. Introduction To this site, a “mini Fed” is sometimes what we call a private bank. The reason is that as the Fed a bank can create as much money as it likes. The reason why…
Executive Summary Mark to model accounting means that the entity that price the asset at any value that they wish. Introduction Private banks always want to apply mark to model accounting, rather than mark to market. This is for the same reason that Enron lobbied aggressively for mark to model accounting. Under mark to model,…
Executive Summary Private banks are a type of parasite on the government’s money creation function. Introduction Private banks only exist because the government granted a concession of being able to create money. As such, they are completely unnatural and do something that is by right the government’s domain. Banks do not loan out money they…