Folks who learned over the years to trust banks because they were “THE BANK”. They opened checking accounts, opened savings accounts, offered Certificates of Deposit, they were FDIC Insured. They offered home loans, lines of credit, home equity lines of credit, auto loans, they were “your friend”. Until they weren’t.
I am not here to offer an educational program on banking in any way shape or form. I am here to remind everyone that BIG BANKS, LOCAL SMALL BANKS, and all brokerages, no matter what they tell you, are here to promote financial wellness…the financial wellness of their banks, which are all businesses, and most have shareholders that they need to please. Yes, they need to please their shareholders before they please their clients. And now, since 2008 and slightly before, the US Government has entered into the picture. It is hard to tell who are the good guys and the bad guys here.
With the 2008 downturn, there were many surprises. Banks were great dividend payers if you held their stock, until they weren’t. The BANKS had such capitalization problems that they had to stop paying dividends, and those who counted on that income stream were left without the income streams that many had recommended for them for years. The BANKS were safe, until they weren’t. In fact, the US Government mandated that they could not pay dividends. OOPS!
Stopping here for today, I invite you to answer the question in “comments”:
HOW DO YOU FEEL ABOUT BANKS TODAY?