Worst Banks in America
A friend sent me a list of the worst banks in America. They based it on the number of complaints per billion dollars on deposit. I don't know that I agree with the methodology seeing that there is much more scenarios that play a part.
If we just look at this average number of complaints per billion banks you probably have never heard of those at the top of the list.
(3) Citizens Financial Group
(1) TCF National Bank
Then we get to the two banks which I think given other criteria should be 1 and 2. Wells Fargo has 8,465 complaints per billion dollars deposited and Bank of America has 8,069 complaints per billion dollars on deposit. Yet, due to their size, they rank 8 and 10 respectively.
Does Wells Fargo move up the list as the bank who took advantage of their customers by opening 2 million unauthorized accounts? Said another, the bank that committed fraud and identity theft over 2 million times.
Then there are the fines levied against banks. This list put together by Market Watch tallies the number of fines levied against banks since the financial crisis. Fines are typically levied for breaking rules, violating the rights of customers, and breaking laws. Bank of America takes that honor.
- Bank of America
- JPMorgan Chase
- Deutsche Bank
- Wells Fargo
These types of stats continue to raise the question. Why do people continue to do business with these big banks? Remember, there really isn't any big repercussions for breaking the law. For instance, 76 billion dollars in fees levied against Bank of America hasn't seemed to hurt them in the least. Banks are protected from class action procedures and any compliant that requires legal proceedings is down so through arbitration. The beauty of arbitration for the banks is that it is done behind closed doors and the public never hears the verdict.
Remember, the banks are regulated by politicians who serve politics rather than the ones who voted them in. Thus, the big banks should always be protected. Since this protection doesn't extend to you or I, does it make sense to still bank with the big banks? I don't think so.