Cataloging the Banks' Crimes and Misdeeds

This excellent Daily Beast piece by Gary Rivlin catalogs the major crimes of the four biggest U.S. banks plus Goldman Sachs, a feat so daunting that the story runs more than 4,000 words on five pages—and there’s not much filler here.

It’s a portrait of a rogue industry, one that’s enriched itself (actually, further enriched. It was already wealthy) at the expense of the poor and middle class.

Rivlin is an authority on this, having worked the poverty-business beat and written the book Broke USA: From Pawnshops to Poverty, Inc. How the Working Poor Became Big Business .

Here’s Rivlin’s list of crimes and sins just from JPMorgan Chase: Rigging municipal bond auctions, bribing Jefferson County, Alabama, officials to do a bond deal that nearly destroyed the county, financed check cashers and payday lenders, directly and indirectly inflated the subprime housing bubble, screwed clients on Abacus-like CDO deals, overcharged mortgage bills to 10,000 military families, got tangled up with Bernie Madoff, etc.

And that’s just the last few years, folks.

Subprime Citigroup comes in for a much-deserved (and rarely given ) smacking too:

It’s hard to overstate the destructiveness of Weill’s greed. By the time he made his play for Citi, Weill had already swallowed up Travelers Insurance, Smith Barney, and Salomon Brothers. Except a Depression-era law, the Glass-Steagall Act, dictated that banks, with their federally insured deposits, couldn’t take over insurance companies or Wall Street investment houses. But Weill put together this behemoth anyway and went about masterminding the repeal of Glass-Steagall, which happened in 1999.

The repeal of Glass-Steagall set the stage for the financial meltdown that would follow years later. The rationale for Glass-Steagall was never more clear than in the final months of 2008, when federal officials faced the potential for widespread bank failure largely because of the great risks taken by its investment-banking arms.

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Which Bank Is the Worst?

Or maybe the biggest sin is the central role JPMorgan has played—and continues to play—in the rise of what might be called the “poverty industry”: all those businesses that exploit the working poor, such as the payday-loan industry, where lenders



Cataloging the Banks' Crimes and Misdeeds

Here's Rivlin's list of crimes and sins just from JPMorgan Chase: Rigging municipal bond auctions, bribing Jefferson County, Alabama, officials to do a bond deal that nearly destroyed the county, financed check cashers and payday lenders, directly and



Community Bancorp takes Cadence name

Murphy is chief executive of Cadence Bancorp and chairman of Cadence Bank, which reports $4.1 billion in loans and assets, including those from Superior. The bank is now based in Birmingham and has about 100 branches in Alabama, Florida, Georgia,




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