That is about 2.5 billion per month. In profits (not revenue).
What could they possibly be doing to make that kind of money.
From what I understand is that the bank gets cheap (almost free) money from us taxpayers and then lends it out back to us for obscene interest rates. That’s over 500 million per week that they make off of us. But they get to keep it.
Shouldn’t the government cut out all the middle-men moochers?
| by Anonymous | reply 45 | July 27, 2022 7:36 AM |
We own a small business and they process our cc/interac payments which are significant. So they are basically getting a cut of a huge percentage of sales of everything sold and paid for by cc or other electronic transaction. Every time you swipe your cc or debit card they get money if they are the provider and they have a huge share of the market, this isn't even including what they get if your cc is with them and you pay them interest.
| by Anonymous | reply 1 | July 14, 2022 3:27 PM |
I refer to banks as "financial utilities." Seems there's almost no way to lose money--and plenty of ways to make money--in this "industry."
And when things get real bad, the banks expect the public to bail them out. Their industry group, the "Financial Services Roundtable," takes your money and uses it to feather the nests of, and wield outsize influence over, "sympathetic" members of Congress.
All in all, it's a "heads they win, tails you lose" dynamic.
| by Anonymous | reply 2 | July 14, 2022 3:33 PM |
Much of it is interest. The interest people pay on their debt is going up, and Chase makes money off of that
| by Anonymous | reply 3 | July 14, 2022 3:34 PM |
It’s so obvious! They are on Chaturbate making big bucks.
| by Anonymous | reply 4 | July 14, 2022 3:35 PM |
Actually R1 that is wrong.
Visa and Mastercard get those fees. Not really the banks.
The banks get the interest on the credit cards. Not the merchant fees, or not most of that fee anyway.
But my point is that the banks are now lending us our own taxpayer money instead of lending us customer deposits.
The Feds should cut these guys out and make low interest loans to people and make the student loans no interest.
| by Anonymous | reply 5 | July 14, 2022 3:36 PM |
Is anybody here not too stupid to have this conversation?
| by Anonymous | reply 6 | July 14, 2022 3:37 PM |
r2 does knowing that make you less inclined to vote? Does it make you less inclined to pay attention to politics?
| by Anonymous | reply 8 | July 14, 2022 3:37 PM |
The answer is they are getting this money for free. They do nothing for it. There is no risk. All reward.
Remember that while you are working 60 hours a week for chump change.
| by Anonymous | reply 9 | July 14, 2022 3:38 PM |
If you know r6 then spill.
No one learns anything from your snark.
| by Anonymous | reply 10 | July 14, 2022 3:39 PM |
They make over 500 million a week in profits alone.
That should be a clue.
Something is not right with this picture.
| by Anonymous | reply 11 | July 14, 2022 3:39 PM |
Their CEO makes over one million A WEEK with salary and bonus.
Smh.
| by Anonymous | reply 12 | July 14, 2022 3:43 PM |
Criminal and should NOT be allowed. Even HALF of that profit is too much.
| by Anonymous | reply 13 | July 14, 2022 3:43 PM |
How do they do it, OP?
Being major stockholders in the New York Federal Reserve Bank helps a lot!
| by Anonymous | reply 14 | July 14, 2022 3:44 PM |
a million a week in his pocket OUT OF OUR OWN TAX REVENUE.
| by Anonymous | reply 15 | July 14, 2022 3:44 PM |
When are you people going to stop playing culture wars and wake up to the only game in town which is separating Main Street fools from their hard earned money.
| by Anonymous | reply 16 | July 14, 2022 3:45 PM |
Visa and MC receive a fee known as "interchange" plus transaction processing companies charge a fee. For large companies like Walmart, it's usually interchange+a set fee. For small businesses, it's probably more a straight percentage of transaction 1.5%-3.5% on average.
In turn, the card issuing bank receives the interchange. Visa and MC make money off other services provided. Depending on the country, they also receive a very tiny portion of the interchange fee, as well.
Back to the initial question: JPMC makes money from consumer lending, corporate and investment banking with much smaller contributions from commercial banking and wealth and asset management.
Before commenting, people should probably just look at their annual report.
| by Anonymous | reply 17 | July 14, 2022 3:45 PM |
I’m not getting sucked into the right wings hate of the treasury/feds but the banks are bleeding Americans dry and it needs to end.
They need to bring back 10 percent personal savings interest.
Make it 25% by stopping the free money train that banks have ridden to record profits while the average worker gets screwed.
| by Anonymous | reply 18 | July 14, 2022 3:47 PM |
If you're jealous OP, maybe you should start a bank like Mr. JP Morgan did.
| by Anonymous | reply 19 | July 14, 2022 3:48 PM |
And remember that "When you own a central bank, you can buy anyone"!
| by Anonymous | reply 20 | July 14, 2022 3:50 PM |
I checked my Chase account balance on a non-Chase ATM -- didn't withdraw cash -- and was still charged $3!!
| by Anonymous | reply 21 | July 14, 2022 3:51 PM |
"When are you people going to stop playing culture wars and wake up to the only game in town which is separating Main Street fools from their hard earned money."
Because it's far more important to us gay incels and obsessive compulsives living in Mom's basement to determine whether or not Marcia P. Johnson threw the first brick at Stonewall. Don't you realize the huge cultural implications of this? Are you not aware trannies are anathema to gay men and straight women. Priorities, please.
| by Anonymous | reply 22 | July 14, 2022 3:55 PM |
Hey Gay Nerd, and welcome to the chat!
| by Anonymous | reply 23 | July 14, 2022 3:59 PM |
[quote]I’m not getting sucked into the right wings hate of the treasury/feds but the banks are bleeding Americans dry and it needs to end.
I did not realize it was the right wing that had the hate on for feds, I thought it came from the left.
| by Anonymous | reply 24 | July 14, 2022 4:01 PM |
OP the banks don't get taxpayer money for free and then loan it out. They will sometimes borrow money from the Federal Reserve at a rate lower than they then charge to loan it out, to meet their minimum reserve requirements but that really isn't taxpayer money it is money that the Fed pretty much creates out of thin air. People and companies deposit money into banks the banks then turn around and loan that money back out at a higher rate than what they pay for deposits. That is how they make money but they also take the risk of losing it if they make bad loans. If banks didn't make money our whole economy would come crashing down. There are excesses in every business but that is because businesses have more power with legislatures than voters.
| by Anonymous | reply 25 | July 14, 2022 4:14 PM |
BTW, there isn't enough taxpayer money to give it to the banks for free even if the government wanted to, since taxpayers are not paying enough taxes to cover what the government spends, the government has to also borrow money to cover its obligations. Some of that money is borrowed from other countries but most of it is borrowed from US citizens and banks.
| by Anonymous | reply 26 | July 14, 2022 4:20 PM |
The real money for these usury satanists is in lending money to governments, since governments are curiously forbidden from issuing their own money but must borrow all money, at interest, from privately owned central banks.
| by Anonymous | reply 27 | July 14, 2022 4:23 PM |
[quote]Visa and Mastercard get those fees. Not really the banks.
What are you talking about? Most credit cards are connected to a bank. For example, Citi cards associated with Citi bank. Same with Chase etc.
| by Anonymous | reply 28 | July 14, 2022 4:31 PM |
The level of moronic comments in this thread scares me, once upon a time DL was full of smart witty posters who could answer a question accurately and insult you at the same time, how times have changed.
Banks do not use taxpayer money FFS.
Uncle Sam is not giving the banks taxpayer funds for free. The FED does loan out funds at lower rates to big banks which in turn the bank loans out to consumers and businesses at a profit, this is one of the many ways banks make money.
They also make money on various fees like interest, membership and service fees, wires, currency exchange rates and brokerage commissions and fees, I could go on but you get the picture.
Rising interest rates are a big factor here with rising consumer debt levels which translates to more profit for the bank, of course this could go south if they start to have defaults from bad loans.
| by Anonymous | reply 29 | July 14, 2022 4:51 PM |
“The FED does loan out funds at lower rates to big banks which in turn the bank loans out to consumers and businesses at a profit, this is one of the many ways banks make money.”
Ok so it’s not tax payer money but it is government money. It’s still the government subsidizing these banks (on both ends, mind you, considering the frequent bailouts).
So the Fed should just lend this money to consumers directly or create and agency that can lend out this money without the huge interest that banks charge.
| by Anonymous | reply 30 | July 14, 2022 5:16 PM |
If the federal government is guaranteeing the student loans and the Fannie Mae loans they should just lend the money in the first place to consumers at no interest.
| by Anonymous | reply 31 | July 14, 2022 5:17 PM |
Banks need to return to borrowing money from consumers and not Uncle Sam.
Does anyone remember savings rates?
| by Anonymous | reply 32 | July 14, 2022 5:27 PM |
The elimination of personal savings rates was a major blow to woeking and middle class families. Saving was a big pet of the family picture.
It wouldn’t take long to bring that back if the banks were required to play fair.
| by Anonymous | reply 33 | July 14, 2022 5:28 PM |
The Big Banks stealthily operate huge land groves of tens of thousands of Money Trees, and every quarter, there are billions and billions of cash money dollars ready and ripe for the picking...
| by Anonymous | reply 35 | July 14, 2022 5:48 PM |
Can we settle at 12.5% personal savings rates?
Let average Americans get a piece of it all.
| by Anonymous | reply 36 | July 14, 2022 5:54 PM |
Yes I’m jealous.
Jamie Dimon gets a loan from MY government for zero percent, and then Dimon turns around and charges me 25% interest on my student loans while the government guarantees that loan to Jamie and will dock my wages to pay him back?
He makes OVER a MILLION dollars a WEEK.
SOMETHING IS NOT FAIR HERE.
| by Anonymous | reply 37 | July 14, 2022 5:54 PM |
Student loans should be no interest.
Why is tuition so high when all the schools have billion dollar endowments?
| by Anonymous | reply 38 | July 14, 2022 5:55 PM |
[quote] Can we settle at 12.5% personal savings rates?
Sure if you want to be paying 25% interest rate on a home loan, 40% on car loans and 50% on credit cards.
Banks are always going to charge way more for loans they grant hand what they pay on deposits. I am no defender of banks, they pay their top officers way too much money. If you think banking is a easy racket that makes lots of money then you should buy bank stocks.
| by Anonymous | reply 39 | July 15, 2022 9:17 PM |
R29 wins the thread. Do you people have the slightest clue about finance? Motherofgod…the federal reserve bank of New York doesn’t have stockholders. Visa and MasterCard don’t get the clearing revenue. Wow.
| by Anonymous | reply 40 | July 16, 2022 1:03 AM |
How OP?
WITH NO ONE WATCHING !!!!!!!!!!!! THAT'S HOW !!!!!!!! THE 1% AND WALL STREET WILL FOREVER RULE OVER DUMB FAT LAZY AMERICANS !!!!
DUH, OP !!!!!!!!!!!!!!!!!!!!!!
| by Anonymous | reply 41 | July 16, 2022 1:06 AM |
We need to focus on Trans Womyn of Color and Latinx folkx, and taking down white privilege!!!
| by Anonymous | reply 42 | July 16, 2022 1:57 AM |
R6, apparently not.
Girls, girls! Any bank worth it's salt (in America, at least) has what we called D I V E R S I F I E D income.
Your credit card interest. Your mortgage interest. Personal loan interest (yes, people still borrow money from the bank), overdraft fees.
Let's take it up a level: Business loans, business credit card interest, commercial mortgage underwriting fees and interest!
Even higher: Retainer fees they charge high net worth clients (Chase Private Client) to perform services/holding their cash. Investment income from market trading operations, investments in foreign markets, and currency arbitrage.
Oh, and the cash in your checking account? The Federal Reserve pays them ~1.5% interest on it while they charge you a fee for lack of a minimum balance.
330m Americans and a decent portion of them need financial services from the poors to Jay Gatsby himself! Finish the math OP....
| by Anonymous | reply 43 | July 16, 2022 1:28 PM |
R39 we don’t have to accept those numbers. They will have to lower them if they want anyone to get a loan.
The point is we need to get back to banks competing for our money like it was up until recently.
The government should cut out the banks and cut in the average person in this county. The banks are getting an unfair advantage.
| by Anonymous | reply 44 | July 16, 2022 8:12 PM |
Banks are not intermediaries of loanable funds.
Nearly everything taught in econ101/102 about money itself (when they bother to discuss the topic) is wrong.
Loans create deposits, not the other way around. They loan money and create money, then fix their reserves later. Meanwhile, the creditor spends the money on their home, business or other project.
The Fed reserve is like a club. If you want in on government backing and the fed funds window, you have to "buy in". Supposedly the "stockholders" of the fed return a certain amount of their profits back to the Fed, and I believe this is put in the US Treasury's account with the Fed. I don't think the fed has voting stock. The Fed is essentially the banking industry's version of the Mint.
The govt creates money by ordering the Fed to mark up accounts. Whatever story it tells about where this money "came from" is essentially that--a story. And banks have, by virtue of their Fed stock, a bit of the government's "money creation" powers to make (hopefully) viable loans.
Offsite Link| by Anonymous | reply 45 | July 27, 2022 7:36 AM |
