The US’ biggest bank, JPMorgan Chase, together with other lenders, managed to take a big slice of the coronavirus relief program pie through fees, while reporting record quarterly profits.
Max Keiser and Stacy Herbert discuss how the banks managed to get such a large cut of the funds, having made a fortune in the last financial crisis after the government bailed them out. Keiser, a former Wall Street stockbroker, notes that professional banks enjoy almost zero risks by using hedging strategies, but, at the end of the day, get bailouts sponsored by the “losers in retail trading.”
“That’s where the capital comes from in America...it comes from the losers,” the host says, comparing the US economy to a casino.
“During this depression, the government prints a lot of money and gives it to [JPMorgan CEO] Jamie Dimon, and then he buys expensive toys with it,” Max adds, noting that the funds can even be spent on buying the company’s own stocks. “So, people in America look at that and say, ‘Wait a minute – this is the most corrupt scheme I’ve seen, ever!’”
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