For years banks encouraged clients to buy overpriced houses by obtaining low-interest mortgages from them. They were advised to lie on the mortgage application about income, years of service, etc. All the time banks knew that eventually they would not be able to make payments, and they would lose the house. Banks would foreclose and keep all the money the individuals had put into the mortgage. (Home ownership is more than paying a mortgage. One also has to pay taxes, insurance, heat, water, upkeep and repairs.) Of course banks never mentioned this to the enthusiastic client. This scam caused the worst recession since the Great Depression of the ’30s in the United States and around the world in 2008. Banks were never punished for this crime, and to this day they steal from the public. The public is paying for it as banks pay next to nothing interest on their savings accounts and CDs.
As I had some money in a CD, I was always being told by my bank that I should speak to their financial advisor, who would advise me how to get a better return. This I foolishly did and bought into funds he suggested, only to lose money month after month until I finally closed the investment account, taking a big loss. The bank’s response: “Take it off your income tax as a loss.” They even had the audacity to charge me to buy into the funds and close out. This is another bank scam to steal money from its clients, especially senior citizens who depend on interest income.
I have brought this matter to the Securities and Exchange Commission, and urge anyone who has been ripped off by a bank to do the same. As banks were not punished, they continue their cunning tricks with their conniving financial advisors, whose job is to badly advise clients. They don’t want to help you get a better return. They work for the banks.