Bailed Out Banks Face Congressional Probe For ‘Predatory’ Practices

April 13, 2009

US (ChattahBox) – According to a breaking story by the Wall Street Journal, banks that received government aid as part of the Troubled Asset Relief Program, the bailout that was created to increase lending to the public during financial crisis, are being investigated for their current business practices.

Large fee increases, interest hikes, and bad loans that created the bad financial situation in the first place are still running rampant across many of those institutions that participated in the bailout.

“The people who are subsidizing the activities of the banks through their tax dollars are the same people who are furnishing the high profits through consumer lending,” Congressional Oversight Panel leader Elizabeth Warren said in a recent interview with the Wall Street Journal.

Given the large amount of funds that have been ripped from taxpayers and given to these banks, the idea that they are still forcing the people to pay through increased fees to cover for their own incompetent lending practices is a worrying one. Sadly, even with the Congressional probe in place, predatory banking and lending is not over yet.


Comments

One Response to “Bailed Out Banks Face Congressional Probe For ‘Predatory’ Practices”

  1. Old Man Dotes on April 13th, 2009 4:27 pm

    I certainly hope that includes Countrywide, the predatory mortgage lender. They can’t explain to me why my payment keeps increasing while the interest rate they claim they are charging me keeps decreasing. Or they won’t, which is my belief.

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