467,000 more jobs lost in June.

[TheRealMafoo]

NJ5 said:

TheRealMafoo said:

NJ5 said:

TheRealMafoo said:

A banks job it so maximize profits.

Not when that jeopardizes their long term profits. Publically owned banks have the duty to protect their shareholders' value, which clearly didn't happen if you look at the current valuations of these banks.

 

Then that bank goes out of business due to being poorly run, and all the shareholders lose there money for letting it happen.

I don't see where the problem is.

But wasn't the point of your reply to akuma587 that banks did their job? That's what I was countering.

 

 

My point is banks did what they did to try and fulfill there mission statement. To make money within the confines of the law for there shareholders.

 

Wether they did a good job of that or not is irrelevant. If the government makes it more profitable for a bank to give a loan to someone who has no business having one, it's the responsibility of the bank to give it. They answer to the shareholders, not the person who comes to them to get a loan.

 

For example, at the banks shareholders meeting this conversion would be ok:

 

Of the 40% of loans we turned down, 3% of them the government incentivized, and while we turned down 20 million in profits this year, we feel it's better for our long term profitability.

 

 

This conversion, would not be ok:

 

Of the 40% of loans we turned down, 3% of them the government incentivized, and while we turned down 20 million in profits this year, we feel it was the right thing to do, because they really shouldn't buy a house they can't afford.

 

 

Not only would that second conversation get you fired, at the time it was probably against the law somehow.