Let me point out Wall Street’s opposition to imposing rules upon various banking institutions through this comment, “Every time we announce an economic policy that Wall Street does not like, the Republicans are standing right there with Wall Street, defending them.” Unfortunately, this action results in further policies that create greater inequities within our society. It is the inequities in policies relating to socio-economic infrastructure that bring about clashes within society that do not always result in positive collective outcomes for financially disenfranchised groups existing within the U.S that are dependent upon an increasingly apathetic neo-liberal middle class to speak for them socio-economic matters. Since, despite affirmative action, they still do not possess a voice that neither liberals, nor conservatives consider worth listening too unless those voices are telling them what they want to hear. Those groups that are financially disenfranchised continue to be harmed by various banking practices that help to drive them deeper into poverty such as overdraft fees for those existing upon SSI/SSDI, selling the personal information of students and individuals unable to find employment to credit card agencies, utilizing the direct deposits of those existing upon fixed incomes as part of a collective, bank owed collateral to support a bank’s corporate investment schemes without consideration for how those on fixed incomes would be affected if the bank should lose its shirt financial shirt because of those schemes.
“CRL’s June 18, 2008 report also finds that debit cards are the most frequent trigger for overdrafts even for people 55 and older – these debit card overdrafts are both extremely costly and easy to prevent if the banks were interested in discouraging them.”
What is unique about their situation is that if the government were to create a form of banking just for this population either the banks themselves, those on the political and socio-economic right which includes Tea Baggers would immediately scream fowl and begin blame the victim propaganda strategies as oppose to allowing the government in any way to prevent these individuals from sinking further towards the bottom of the U.S. socio-economic ladder even if they are barely hanging on to its bottom rung. According to (et. al. 08/26/2007 – Recent economic studies paint an alarming picture for American consumers.) The impact of credit card deregulation hits the poor, minorities and women the hardest. Cardholders earning $25,000 are five times more likely to pay APRs over 20 percent than those who earn $100,000. Fifteen percent of African Americans and 13 percent of Latinos pay more than 20 percent APRs on their account balances, compared to seven percent of whites. Eleven percent of single women cardholders pay greater than 20 percent APRs, compared to six percent of single men. The study also found that these groups are more likely to miss payments.
This means that large corporate banks have refused to change their banking practices to fit the current socio-economic crisis; instead of meeting the needs of their clients which would include the creation of: innovative programs targeted towards preventing losses to those clients relying upon fixed incomes caused by banking fees for overdrafts, to partnering with small nonprofits dedicated to delivering community based services to those in need of basic necessities, to assisting in supporting local schools in their vicinity either through donations for required school supplies, hiring students or assisting schools to invest in economic opportunities that would enable them to become economically self sufficient. Many of those banks that were bailed out during the U.S economic crisis still continue to do business as usual; while using their clients’ money to either take over smaller banks, or invest in even grander schemes of financial conquest.