The Hidden Robbery of Commercial Banks

Commercial banks rob everybody every single day. Not only do they take your money, which they need, but they also use it to give out loans at ridiculous interest rates and make substantial profits from it. In return, they offer you close to 0 interest, if not even lower.

But it gets even worse. Using your own money wasn't enough; they then start charging you for the privilege. Anytime you use an ATM that’s not theirs, or if you take out too much or too often, you get hit with staggering fees. These fees can easily range from 2 to 3 or more, each transaction. This is incredibly harsh on the financially struggling individuals who are not withdrawing hundreds, but rather only a few twenties. It's a textbook example of kicking someone when they're down.

To top it off, they have numerous hidden and transparent fees that keep on multiplying. I recall a financial institutions class where a former Merrill Lynch lawyer discussed how the bank was constantly coming up with new fees to charge. Just from ATM fees alone, in one year, they made billions. That’s not something to take lightly.

Can’t Get Robbed If You Don’t Have One

While it's true that if you don't have a bank account, you won’t get robbed, there is an alternative story to share. It's a tale of how a well-known investment bank managed to avoid a different kind of robbery.

In New York City, I was working with an investment bank that kept a minimal amount of money in their operating account. We typically used JP Morgan Chase as our banker. One day, we received a Chase email notice about a deposit of $1.21 million into our account. After three weeks, with the deposit still untouched, Chase never said a word. It wasn't an interest-bearing account, and we just left it in the account as is.

After three weeks, I went to the Chase Private Client bankers at 42nd street and showed them the deposit. We all had a good laugh, knowing that the bank had essentially made a mistake. They promptly returned the money to the rightful owner. This case is a perfect counterexample to the common narrative of banks robbing their customers.

While this story highlights the financial pitfalls of dealing with banks, it also demonstrates that errors can occur, and banks do not always take advantage of their customers. However, it never hurts to remain vigilant and question any unusual transactions or unexplained discrepancies in your account.

In conclusion, it is undeniable that the commercial banking industry holds a hidden and often unfair imbalance where profit is prioritized over customer satisfaction, and it's important to be aware of these issues and take steps to protect yourself from any foul play.