Several things to tie together here. One, banks do not lend money anymore. At least not to the private sector.
So how do they make money? Well, if you are BAC you book revenue by fleecing your customers for various services. Here’s BAC inventing the perpetual revenue engine in the form of a $30 charge every six months to keep a stopped check stopped.
And here’s BAC deciding that if it does not have a maximum penalty APR it charges credit card customers, it does not need to tell them what the default APR might be. That is about 58 million card-holders left in the dark via that wrinkle.
Finally, the fascist roots of such non-disclosure and government dependence. Simply, BAC does it and gets away with it because the Fed does it and gets away with it. Our financial system has become opaque and authoritarian as opposed to transparent and market-driven. If everything is done by fiat and ultimately back-stopped by the barrel of a gun, then of course you’ll take the credit assigned to you or do without.
