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True, but is it regulations that keep the bank from stealing your money and using your financial transactions against you - or is it the prospect of losing bil
by vivekd 10y ago
True, but is it regulations that keep the bank from stealing your money and using your financial transactions against you - or is it the prospect of losing billions through loss of customer trust. I would guess it's the later because banking regulations are fairly toothless and bank lobbies are extremely strong.
- beagle3 10y agoI would say both. The MERS[0] registry could not be set up because the banks thought it is sort-of-gray legally, and they would be able to work it. Then, it turned out that it is actually against black letter law, so we had the robosigning scandal, which they somehow managed to weather unscathed. Banks have foreclosed on wrong houses etc, and didn't suffer (enough) for it from either the hand of the law or the hands of customers, so they don't care (enough) to make sure they're doing it properly. [0] https://en.wikipedia.org/wiki/Mortgage_Electronic_Registration_Systems https://en.wikipedia.org/wiki/Mortgage_Electronic_Registrati...
- jwhitlark 10y agoI believe you're mistaken. Look into the "wildcat banking" era in the US for numerous examples of banks stealing or defrauding customers when there were no federal regulations on banks.