Wednesday, February 06, 2008

No hope for banking

The times reports on a new allegation that one of the banking giants is facing. Wachovia has been alleged to continue to do business with telemarketing firms which have been involved in fraudulent scams.  These scammers had to pay hefty fees to the bank whenever a consumer found out that he/she was had been cheated and demanded the money back.  The bank saw this as a good business opportunity and continued to process these scam transactions.

This is just icing on the cake.  Let's count the follies --
1) predatory lending practices
2) colluding with real estate agents etc.
3) helping out scammers
4) jacking up stock prices
5) crashing the stock market
... and finally, 6) stupidity or maybe greed.....for creating the current financial mess ....

even after all of this, their top executives continue to make money by the millions, all in the name of creating shareholder wealth! Someone needs to step right-in and penalize all the scamsters who run such organizations

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