The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

What’s a Bank to Do?

Apr 20, 2009

All through last year, the Federal Reserve cut its interest rates to the banks. In December, the prime rate fell to 3.2% – that’s the rate the banks have to pay to borrow from the Fed.

So of course banks lowered their interest rates to consumers, right? Oh nooooo, not on your life. Citibank, JP Morgan and Bank of America all quickly raised their highest credit card rates to just under 30%!

These are the same banks that had just received trillions of dollars from U.S. taxpayers, directly or indirectly. Obviously, their raging thirst for more money has no limit!