Banking Greed

In before-crisis Spain, when everything was fine and dandy and a bank would give loans just for the fun of it, there was a financial institution on almost every corner and in almost every village. There were the normal corporate banks, and the cajas, which were like a cross between a credit union and a savings and loan bank. These last were set up in the nineteenth century for clients who needed financial help but didn't have enough resources to be even looked at by the commercial for-profit banks. Cajas never charged commissions for simple things, like having an open account with less than a certain amount deposited in it. Their charters also obliged them to be involved in social and cultural aspects of society. Dividends could not be distributed among the subscribers (clients) and had to perforce be invested in society. 

The boards of directors were made up of members of the local governing bodies, either municipal or regional; clients; founders or owners; and workers. During the boom years, many found ways of going around the rules, and profits were always written into the books, even though many cajas were running at extreme losses. Money disappeared, clients were railroaded into buying questionable services, and chaos reigned. When all was discovered, a conversion was mandated. Most cajas were fused with others, and most were then transformed into regular banks. Others were bought outright by corporate banks, and their social roles either disappeared or were very much reduced. For the clients, though, the most important impacts were the closure of offices and the imposition of commissions.

The emphasis went from going to the office for everything, to doing business online. Banks now offer commissionless accounts if a client has his salary directly deposited. If you don't have direct deposit, you have to pay maintenance fees yearly or quarterly, depending on the bank. You have to pay fees to transfer money, to withdraw from an ATM that is not your bank's, and even to pay mandatory bills, such as school insurance every September, if the entity where you pay is not where you have your account. And now that interest rates on deposits is practically zero, it's almost not worth it to have a bank account. The problem is, in this society, it's a necessity.

Checking accounts are not popular. Bills are generally paid at the bank, and most are domiciled. Therefore, you must have a savings account to pay your monthly bills. If you're unlucky enough to not have direct deposit, you have to pay to be able to pay. Convoluted thinking designed to pick your pocket at its best. And now, banks are threatening to charge even more commissions, even if you have direct deposit. Despite generally earning over five percent more profits last year than the year before, banks are arguing that they can't afford to not charge commissions. And, despite having closed many offices, they also say they must close more and cut down the number of employees. 

Who loses? The usual people. Those who don't have a steady job or get paid under the table and elderly who live in small towns and villages who will have to find transportation when their branch bank closes. Who wins? The usual people. Those who have tens of thousands or hundreds of thousands in their accounts, a good internet service, and direct deposit every month from reliable employers. 

The usurers will never lose.

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