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Should people patronize Wells Fargo?
“All of the big banks in the United States are judged purely by the fines they pay, and the criminal complaints that they settle. [Based on this] you shouldn’t open up a bank account anywhere,” said Valentin Schmid, business editor of The Epoch Times.“If you want to stay clean and with a good conscience, then you should go with a credit union.” Bold Business co-host John Burnett mentioned that there are certain barriers, including being a part of a trade union, to accessing a credit union.
How do we balance bank regulations and providing financial tools to a growing working class?
Schmid answered Burnett’s question by saying that “this is the trillion dollar question.” Schmid claimed that he does not have the answer to this question, but he did say that the banks are still reporting great earnings since the financial crisis. Big banks are generally quite profitable. Schmid’s point is that the fines “don’t really hurt the big banks that much … not the heads of the banks.”
How do we give millennials financial educations?
Burnett suggested that we can take money from the banks and use it toward providing a financial education to millennials. Schmid answered that the way to do this would be to “get cash flow from the banks, extract the money … and this is what the DOJ [has done.] They have to then channel it into projects,” Schmid said. “But the real solution is that banks have to be accountable, which means banks have to be allowed to go bankrupt.”
When people are “sacked” with $200 million still in their bank accounts, Schmid said, “that’s not accountability to me.”
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