Wednesday, October 6, 2010

Wall Street Mega-Banks Employ 'Undercover Brothers' to Rip Off Minorities with Payday Loan Scams

Alternet/ Blog For Our Future/ by RJ Eskow

The big banks are using middlemen to exploit lower-income people without tarnishing their own brands.

All the major banking institutions say the right things about race and equality. They all have diversity programs. A few financial industry leaders, like Robert Rubin and Jamie Dimon, even support socially liberal causes. Yet the banking industry covertly uses payday lenders as a "front," a way to prey on minority neighborhoods without getting their hands dirty.

It's a classic Rigged Game: The banks deny normal credit to lower-income people, then profit from usurious forms of alternative credit (or as it's known in economic circles, "fringe banking"). Fortunately, efforts to draw attention to these practices are beginning to have having some effect.

Click Here to read the full article.

Alternet/ Blog For Our Future/ by RJ Eskow

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