Due to many reasons, banks are having a difficult time that shakes their tarnished reputation and people are losing trust, accountability and credibility on them. Many banking scandals were produced in the country with generations of people being caught in the fray. Because of this pattern, people are tired of the big banks and start to protest their policies. Here we describe some reasons why people hate bankers, based on certain survey reports.
The Foreclosure Crisis
It has been found in 2010 that big lenders and baking institutions were deceptively doing illegal foreclosures through the practice ‘robo-signing’ which indicates the persons who are willing to sign the documents without knowing what they are up to. This crisis had seized home of many and as per the reports one in every 248 households got a foreclosure notice.
The Great Recession
The recession has been started in 2007 pursued the housing burst and led to increased unemployment rates in the country. The Regan Administration was considered as the reason that abruptly brought the recession. The administration was started on the 30 year period of deregulation that allowed banks to expand while removed the legislation that the federal government setup after the Great depression.
Well, the deregulation developed financial fraudulent activities, generally related to real estate investments. By the end of 1980s, many workers were jailed and big investment banks started collaborating and forming monopolies. Courierpoint is the one-stop solution to all your worries related to sending parcels to different corners of the country.
When the monopoly sector got flourished, there was no room for regulatory controls. Moreover, the banks, insurance firms and financial conglomerates included the ‘Securitization Food Chain’, which dealt with mortgage transfer through the economy. This development has generated more loose terms and conditions for loans and as a result, banks started to offer riskier money lending. And, the practice led to people buying homes that were unaffordable, and the housing ripple tripled the cost of homes.
Banks were not remained reliable to customers, but there are people who suggest no particular reason for banks’ demise. The question, ‘why people hate bankers?’ might have two sides of argument. And, whether the banks are still fully transparent is not yet determined. However, when it comes to depositing savings and withdrawing cash, we can rely on banks safely. Many surveys and researches are still conducing to find the reasons.