JP Morgan sure to point out it’s giving back to the community

October 14, 2009

JP Morgan’s PR machine was sure to give a shout out to loan modifications as a counter to the embarrassing amount of riches reported in their third quarter report. The press release of course leads with its eye popping net income of $3.6 billion in the quarter. But before the bank details all the glorious gains in investment banking fees and fixed income, Jamie Dimon takes a moment to say how much the bank is doing for the community.

We recently announced the decision to revamp our overdraft policies to make it easier for customers to have more control over the fees they pay. In addition, our Card Services business has developed new innovative products that enhance the way customers manage their spending and borrowing. We are also aiding communities by working with struggling mortgage customers to modify their loans. We have approved more than 262,000 new trial modifications under the U.S. Making Home Affordable Program and our own modification program, nearly 90% of which include a reduction in payments for the homeowner. Since 2007, we have helped families by initiating 782,000 actions to prevent foreclosure, and we are committed to doing our part to support economic recovery going forward.”

First, the overdraft fees were shameful to begin with, and its doubtful loan modifications would have gotten off the ground without the government pushing it.

The banks are going to work a lot harder than that if they want to manage their pr. Record bonuses this year aren’t going to go over very well with taxpayers who have recently lost their jobs or fear losing them even though their money helped shore up the financial system to begin with.

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We have paid to keep them alive. And we now pay to keep them in profit. If the banks really want to “give back” to the community then hows about not charging interest on monies lent?

That would put money back on the coffers of the banks and the business community can pay interest on loans taken out. That would be fair.

Lending money at interest is called usury. It has been said for thousands of years that this is wrong. This housing mess wouldn’t be a mess except for the fact that interest and profit motivated those people of lesser character to use what influence they could to take profit at the expense of those around them.

Because there were so many people of low character doing this at the same time, our financial industry was brought down. This mess has brought all of us great suffering.

Profit and interest have outgrown their usefulness as motivators. We must now grow up and work to solve real problems. We must grow up and realize that the only thing really worth working for is a better quality of life. Money does nothing to provide this in and of itself. It should therefore not be valued as if it can.

Let’s grow up and become results based and not profit based in our approach to life’s difficulties.

We are not animals and we should not be content to live as such.