tag:blogger.com,1999:blog-1194375569044391746.post3678328343380631940..comments2024-03-28T05:30:09.322-04:00Comments on Corporate Justice Blog: Banks Hoarding Cash (Still)Steven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1194375569044391746.post-57368405913447675022012-04-17T13:15:19.943-04:002012-04-17T13:15:19.943-04:00The financial institutions’ continued practice of ...The financial institutions’ continued practice of hoarding capital only serves to prove the theories that banks, in general, provide no substantial benefit to society other than monetary lending (which can be argued) and the safeguarding of individuals’ financial resources. In terms of financial lending, banks lashed out at stiff regulation proposals following the housing bust, and many predatory lending practices continue to thrive, especially in minority neighborhoods. In terms of financial investment, many bank-sponsored mutual funds underperform the market average and individual bank stocks have not been privy to the recovery of many other sections of the market. Bank-owned certificates of deposit provide an average return of 2.5 – 4 percent per year, at the level of or below the annual level of inflation. Customer service has been decreased as well, with banks eliminating teller positions in favor of automated transactions, increasing transaction and transfer fees, and removing many of the features present in traditional checking and savings accounts. With banks making a habit out of reserving this excess capital instead of contributing to positive growth in any one of the aforementioned areas, the Federal Reserve should change its primary lending function of lending to banks at a pre-supposed rate to an approach that provides incentives and rewards to bank consumers as a means of supporting the economy rather than vaulting resources in preparation for some apparent economical apocalypse. Just a thought… <br /><br />-Shannon KiserAnonymousnoreply@blogger.com