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Just hours after a top JPMorgan Chase executive retired in the wake of a stunning $2 billion trading loss, President Obama told the hosts of ABC's "The View" that the bank's risky bets exemplified the need for Wall Street reform.
"JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting," the president said. "We don't know all the details. It's going to be investigated, but this is why we passed Wall Street reform."
Obama: JPMorgan Is 'One of the Best-Managed Banks', 5/14/12
A new lawsuit, which is bordering on the unbelievable, implicates the Obama administration and some of the world’s largest banks in the largest international money laundering case in history.
This global money laundering network was allegedly formed during the Obama administration and helped banks rob U.S. home owners through offshore affiliates in infamous tax havens and money laundering hubs like the Cayman Island, Isle of Man, Luxembourg and Malaysia.
Landmark Lawsuit by US Home Owners Implicates Obama and Big Banks in Massive Global Laundering Scheme, 5/5/12
Goldman's business model is Grand theft
Goldman Sachs: Making Money by Stealing It , 3/18/12
"Some big names on Wall Street are eager to step out of the spotlight after enduring years of financial-crisis turbulence and negative attention from politicians and protesters"
236 RESIGNATIONS FROM WORLD BANKS, INVESTMENT HOUSES, MONEY FUNDS, 3/9/12
I have extensively edited this list, re-verified links, shortened URLs to make this list more readable. Its grown very rapidly over the past week and was getting unwieldy in its prior form. In some cases certain middle eastern bankers and European private bankers have managed to have their names removed from smaller blogs and news sites so I have updated those cases to larger news organizations less likely to bow to pressure. At the time of this posting all URLs listed work.
101 RESIGNATIONS FROM WORLD BANKS, 2/29/12
BANK CEO AND EXECUTIVE RESIGNATION UPDATE
81 RESIGNATIONS FROM WORLD BANKS, 2/27/12
Global research company J.D. Power & Associates found that almost 10 percent of bank customers switched to another financial outlet in 2011, thanks in large part to increased fees.
Last year, 9.6 percent of people moved their money, compared to 8.7 percent in 2010 and 7.7 percent in 2009.
“It is apparent that new or increased fees are the proverbial straws that break the camel’s back,” J.D. Power’s director Michael Beird told the Los Angeles Times.
Nearly 10% of customers switch banks in 2011, 2/27/12
In another example that we appear to be rapidly moving into a cashless society, Bank of America in California refused to accept cash for a mortgage payment. The manager of the bank said it was against their policy to accept legal tender physical currency (aka U.S. dollars) as payment for BoA mortgages.
Bank of America Refuses Cash for Mortgage Payment, 2/5/12
Let’s speak plainly. If you are in the United States or Western Europe, chances are incredibly high that your bank is simply not safe. In other words, your money is at risk. Big time. Let’s review some of the chief concerns:
Your bank is not safe, 12/21/11
Thousands of Latvians lined up at bank counters and ATMs over the weekend in an attempt to withdraw their savings from Swedbank, the country’s largest banking institution.
This is what your ATM will look like during a bank panic, 12/14/11
The City of New York and the NYPD are engaging in a deliberate campaign of "mass arrests, illegally arresting protesters, including bank customers, and needlessly detaining them for excessively long periods...in order to facilitate and promote the CITY OF NEW YORK's desired reputation as corporate friendly and pro-bank."
So says a federal complaint filed by a woman and her fiancée who allege that they were inappropriately detained by New York City police last month inside a branch of Citibank in downtown Manhattan.
Woman Arrested After Closing Citibank Account in Protest Files Federal Suit Against NYC, NYPD, 11/30/11
The European Union, just like everything else, is merely another scheme to concentrate wealth in a few hands at the expense of European citizens, who are destined, like Americans, to be the serfs of the 21st century.
Bankers Have Seized Europe: Goldman Sachs Has Taken Over, 11/26/11
Here they are. The Financial Stability Board has released a list of 29 banks that it considers global systemically important financial institutions (G-SIFISs) and thus considered Too Big To Fail.
Our 29 Banking Overlords, 11/21/11
I think everyone ought to consider opening a foreign bank account and moving a portion of their savings there. This is the most important step, for four key reasons:
First, most western banks are sitting on hundreds of billions of dollars in losses to their asset portfolios, not only from the sub-prime debacle, but also from sovereign default issues.
Second, foreign banks typically make it easier to diversify your currency exposure.
Third, foreign banks are often much more innovative.
Last, foreign banks are just that– foreign. They aren’t under the control of your federal, provincial, or local government.
Four reasons to open an offshore bank account now, 11/11/11
As the social media-sparked Bank Transfer Day approaches, the Credit Union National Association (CUNA) reports that over 650,000 people have joined credit unions in the last four weeks.
In Minnesota alone, 10,200 joined credit unions between Sept. 29 and Nov. 1, CUNA tells the Minnesota Independent. Credit unions have added $4.5 billion in new accounts since the end of September, CUNA says, reporting that four out of every five credit unions affiliated with the group report that the increase is due to attempts by big banks to raise fees on customers or Bank Transfer Day, a movement birthed by social media that will take place tomorrow.
650,000 join credit unions as Bank Transfer Day approaches, 11/4/11
On Nov. 5th it's time to make Wall Street pay! Move your money from one of the big banks who helped crash our economy to a community bank or credit union. Go to www.moveyourmoneypledge.org to find out how!
On Nov. 5th, Move Your Money!, 11/2/11
Bank of America Corp. (BAC) is in trouble and any other business which would just go under without any help; the corrupt banksters, with the help of the private Federal Reserve, are attempting to pass off their failures to the American people. Again.
Bank of America is attempting to Rob America Blind with the Help of the Federal Reserve, 10/20/11
You are right to be outraged at those who have caused the financial mess the world is in right now. But please please please take a few moments to understand precisely who those people are and how they did it. You can go on hating capitalism
and rich people all you want. But as long as you think they are the source of the problem, the problem will just get worse, while
the real bad guys will be off in some back room laughing their asses off.
Bankster Flier (which can be handed out at protests)
In what can only be the stupidest public relations move in corporate history, financial behemoth Citibank reacted to customers trying to close their accounts today by… bringing in a ton of cops and having them arrested.
DON’T close your Citibank account today - They’re arresting people, 10/15/11
Millions of Americans are about to get stabbed in the back by their banks. Bank of America, JPMorgan Chase, Wells Fargo, Citibank and several other large banks are either already implementing outrageous new bank fees or are currently testing them. So are these ridiculous new bank fees going to be enough to get millions of Americans to finally boycott the big banks? When millions of Americans start paying a $5 fee every month to use their debit cards and when millions of Americans start paying a $20 fee every single month just to have a checking account hopefully that will be enough to wake them up. These fees are certainly not going to cause an "economic collapse", but they are incredibly annoying. The truth is that the big banks are trying to take advantage of us. It shouldn't cost $60 a year just to use a debit card. It shouldn't cost $240 a year just to have a checking account. What we need to do is to send an unequivocal message to the big banks: we don't want your stinking bank fees and we are switching banks.
Bank Fees? Let’s Tell the Banksters That We Don’t Want Their Stinking Bank Fees and That We Are Switching Banks, 10/6/11
A very important document, the Utah Monetary Declaration is now circulating among the citizens of Utah. Though citizens of Utah are attempting to introduce the basic principles of this declaration into the Utah legislature, every citizen of every US state and every citizen of every country in the world should read the below document and note the similarities of the Utah Monetary Declaration to the US Coinage Act of 1792, which protected the freedoms of US citizens until they were destroyed by Central Bankers. You will note that Alexander Hamilton, one of the founding fathers of the Republic of America, penned the US Coinage Act of 1792. Alexander Hamilton was so adamantly opposed to the process by which Central Banks create money today that when he wrote the US Coinage Act of 1972, he believed the no other threat other than the severe penalty of death would prevent bankers from deliberately debasing the value of coined money, and thus, usurping the peoples' freedoms. Today, I’m quite certain that Central Bankers would label the very man that helped found the Republic of America, were he still alive, as a terrorist, for his expressed ideals of freedom oppose all ideologies and principles for which a Central Banker stands.
Utah Monetary Declaration of Freedom From the Tyranny of Central Bankers, 10/5/11
From JPMorgan's website:
JPMorgan Chase recently donated an unprecedented $4.6 million to the New York City Police Foundation. The gift was the largest in the history of the foundation and will enable the New York City Police Department to strengthen security in the Big Apple.
Yves Smith, correctly sees this as JPMorgan buying extra protection.
But, I also see it as a scared JPMorganChase. JPMC is a tight run corporation, $4.6million, though not a large sum relative to total JPMC operations, is still not a sum that is going to walk out of JPM without notice and approval.
Bottom line: The banksters are running scared and don't know when they will need NYPD backup from a very angry public.
Things are getting interesting in Amerika.
Proof the Banksters are Running Scared, 10/3/11
A message from Anonymous concerning Occupy Wall Street and the bankers.
Bankers Are the Problem, 10/1/11
Historically, the FED and other "central banks" came to be called "central banks" for several reasons. First, they are financial organizations. Second, they hold deposits of other banks and governments. Third, their assets are largely financial assets. Fourth, they make advances or loans to other banks on collateral. Fifth, the government has made them to be at the heart or center of the banking industry and the monetary system. Sixth, government power is itself centralized or national. All of these statements are factual.
Now this is an imposing array of reasons why "central banks" are called "central banks". But the most important of these reasons is the fifth reason, which is that the government has used its power to make the "central bank" central. And because the government has used its power to create the "central bank" and make it central, we know that the "central bank" is not a free market institution.
This is the main ground upon which I challenge the notion that a "central bank" is a bank. The concept of "central bank" fails to distinguish a free market business and a bureau created by government power. The term "central bank" undermines this distinction between free market and government. Indeed, it erases it altogether.
'Central Banks' Are Not Banks, 9/24/11
Though the giant elephant in the room being ignored, historical words are being spoken here.
The three words 'eat the bankers' have all it needs to soon become the most seen and the most powerful slogan ever to open the eyes of the masses, enabling them to recognize the Zionist hand behind the miseries humanity finds itself in.
Beat the Bankers, 8/25/11
Warren Buffett's Berkshire Hathaway will invest $5 billion in Bank of America, stepping in to shore up the company in the same way he helped prop up Goldman Sachs during the financial crisis.
Berkshire Hathaway Invests $5 Billion in Bank of America, 8/25/11
Amid all the market volatility and weakness in the financial sector of late, you may have missed this WSJ front page story: "States Go After Big Bank on Forex".
The story is about growing scandal in the banking industry centered around banks allegedly overcharging pension funds for currency transactions.
"Attorneys general in Virginia and Florida filed civil suits against BNY Mellon alleging that the bank cheated pension funds in those states by choosing improper prices for currency trades the bank processed for the funds," The WSJ reports. "The Virginia lawsuit, filed in a Fairfax, Va., state court, cites internal bank emails allegedly showing that senior bank officials knew about, and endorsed, a currency-trading method that hurt state pensioners."
Madoff Whistleblower: Big Banks Are Ripping Off Pension Funds, 8/19/11
This video is stunning, in that it is an articulate and well done rant that will resonate with many readers. The fact that it appeared on Karl Denninger’s site (hat tip reader Scott, Denninger’s been very critical of the TBTF banks) is an indication that the level of frustration with the major banks’ refusal to take responsibility for wrecking the global economy and their efforts to preserve their ability to loot is moving to a new level.
I’m sure there are readers who are employed by banks who perform modest and blameless jobs. Those of you might consider how the abusive policies of the major players are creating anger at everyone in the sector (save obvious small fry like community banks and credit unions).
Video: Bankers are the Enemy of Humanity, 8/15/11
Bank of American and Citigroup both had near death experiences in early 2009. Citigroup was forced by the FDIC to trim its operations considerably. Bank of America was not required to make any serious overhaul. The mortgage mess has exposed the weakness of the bank’s foundations. Perhaps it will manage to muddle through again ex extraordinary official measures, but I would not bet on it.
Bank of America Death Watch, 8/5/11
Most people, even smart people, know surprisingly little about the way money really works in Big Government. With the debt ceiling fiasco suddenly raising awareness of the possibility of a total global financial blowout, now seems like a good time to remind people of seven disturbing facts about money that are almost never acknowledge in the old media.
Seven startling things most people still don't know about the national debt, banking and the money supply, 8/2/11
But when Njoku showed up at the Chase branch near his house intending to cash the check, he was in for a nasty surprise. The check had Njoku’s name and address on it and was issued by JP Morgan Chase. But the Chase Customer Banker who handles large checks at the Auburn branch was immediately suspicious.
Man Jailed Over Fraudulent Check That Wasn’t Fraudulent, 7/9/11
Sacré Bleu! Last Friday, US prosecutors revealed that the hotel maid who had accused former International Monetary Fund chief Strauss-Kahn of raping her in his hotel suite was a serial liar. She had lied about being raped to get into the US, lied on her tax returns, and lied on numerous other issues. She had been taped discussing $100,000 payments with jailed drug dealers. Media sources in New York asserted she was a prostitute who routinely serviced hotel clients.
Bizarre Dominique Strauss-Kahn Affaire, 7/5/11
A new report prepared for Prime Minister Putin by the Federal Security Service (FSB) says that former International Monetary Fund (IMF) Chief Dominique Strauss-Kahn was charged and jailed in the US for sex crimes on May 14th after his discovery that all of the gold held in the United States Bullion Depository located at Fort Knox was ‘missing and/or unaccounted’ for.
According to this FSB secret report, Strauss-Kahn had become “increasingly concerned” earlier this month after the United States began “stalling” its pledged delivery to the IMF of 191.3 tons of gold agreed to under the Second Amendment of the Articles of Agreement signed by the Executive Board in April 1978 that were to be sold to fund what are called Special Drawing Rights (SDRs) as an alternative to what are called reserve currencies.
Russia Says IMF Chief Jailed For Discovering All US Gold Is Gone, 5/31/11
US Uncut, a new decentralized direct action group, held teach-ins inside two Bank of America branches in New York City on Saturday. The classes were held to discuss the inherently corrupt bank bailouts, the “tax-avoidance” of huge US corporations by which two-thirds of US corporations pay zero taxes and what kind of action we the people can take to stop the massive tax-payer funded transfer of wealth from the poor and to the rich.
New York City Teach-In at Bank of America, 5/2/11
Bernanke spoke!
Yes, he held a press conference. Why would the world want a press conference from a central banker? Ah…good question. Because he’s a celebrity… He’s powerful. He moves and he shakes. He’s as popular as William and Kate put together.
How to Be a Central Bank Celebrity, 4/29/11
Student loan shark industry – total revolving debt contracts during recession while student loan debt increases by a stunning 80 percent on an annual basis.
A college degree for working at McDonald’s?, 4/27/11
The only way to protect yourself against the risk of being boiled in a government pot is to keep some of your assets in another country. Depending on how you go about it, the specific benefits you might achieve are:
Expatriate Your Wallet, 4/23/11
We stand today before the gates of one of our temples of finance. It is a temple where greed and profit are the highest good, where self-worth is determined by the ability to amass wealth and power at the expense of others, where laws are manipulated, rewritten and broken, where the endless treadmill of consumption defines human progress, where fraud and crimes are the tools of business.
Throw Out the Money Changers, 4/18/11
The federal government on Wednesday ordered 16 of the nation's largest mortgage lenders and servicers to reimburse homeowners who were improperly foreclosed upon.
Gov't orders 14 lenders to reimburse homeowners, 4/14/11
Everything that you own is slowly being taken away from you. It is being done purposely and it is being done by design. Many Americans like to think of themselves as “well off”, but as will be demonstrated below, we don’t “own” nearly as much as we think that we do. The truth is that most of us have to frantically run around accumulating wealth as rapidly as we can so that we can somehow stay ahead of the rate that wealth is being taken away from us. The entire system is designed to take what you have away from you. There are many ways that this is accomplished – taxation, inflation, debt, interest, fines, fees, tickets, government seizures and good old-fashioned corporate greed. If you tried to just sit back and do nothing but hold on to the wealth that you already have you would find out that it would disappear rather quickly. When you take the time to really analyze our system the conclusion is undeniable – everything that you think that you own is being systematically taken away from you.
65 Ways That Everything That You Think That You Own Is Being Systematically Taken Away From You, 4/12/11
NYU's Stern School of Business has released its rankings of banking institutions that are most capable of causing major damage to our financial system.
The ranking is based on the percentage of total systemic capital that each institution would be responsible for should it default
20 Banks That Could Bring The Entire Financial System To Its Knees, 4/10/11
Laundering money is big business for the top banks as proven by their constant (small) fines for getting caught.
Why Banksters love Drug Gangsters
Documents produced by the Federal Reserve in response to an order from the Supreme Court show that Bernanke loaned billions to foreign banks through its discount window. As Bloomberg - which brought the lawsuit which resulted in the document release - notes:
Bernanke Provided $Billions In Loans to Gaddafi, 4/1/11
Back in April 2010, before Waddell and Reed sold a few shares of ES, effectively destroying the market on news that Europe was insolvent, we made the following observation: "The IMF has just announced that it is expanding its New Arrangement to Borrow (NAB) multilateral facility from its existing $50 billion by a whopping $500 billion (SDR333.5 billion), to $550 billion." Little did we know that our conclusion "something big must be coming" would prove spot on just a month later after Greece, then Ireland, then Portgual, and soon Spain, Italy, Belgium, and pretty much all other European countries would topple like dominoes tethered together by a flawed monetary regime.
IMF Prepares For "Threat To International Monetary System", 3/24/11
After the Supreme Court refused to hear an appeal of lower-court rulings, the Federal Reserve must release information within five days about its “emergency” bailouts of large banks and financial institutions undertaken in 2008 under the guise of saving the financial system.
Supreme Court: Fed Must Disclose Bailout Details, 3/22/11
As YouTube and other digital media move beyond computer-savvy young people into the ranks of even stodgy businessmen, these subversive outlets become serious problems for the ruling elite. This trend is epitomized by the radical change in the Federal Reserve's image. In just a few short years, the Fed has transformed in public opinion from a mysterious, wise, and boring institution into a fascinating engine of corruption and comedy.
Everybody Knows Bernanke Is a Joke, 3/19/11
Reuters reports that Tokyo Stock Exchange firms are seeking market closure as the markets are too volatile. We agree. This means we may get the first post September 11 bank holiday as early as tonight. If so, keep an eye on the USDJPY. "Some foreign financial institutions are calling for Japan's stock market to halt trading, while the Tokyo Stock Exchange and Japanese financial regulators are planning to keep markets open, news agency Nikkei reported. The news agency said officials from more than 10 non-Japanese financial firms held a conference call Tuesday afternoon, with some firms calling for the market to be closed immediately, Nikkei reported, citing people familiar with the discussion. Some participants argued that the market was too volatile to continue trading, according to the report." And if Japan closes, watch for rolling market shutdowns westward as the sun rises over each individual stock market.
Bank Holiday: Imminent?, 3/16/11
The American banking industry is trying to convince the public that simply by hiding bad debts in the deep levels of corporate balance sheets that taking on leveraged risk is somehow safe. FDIC insured banks currently have $7.4 trillion in actual deposits, much of it covered by the Deposit Insurance Fund (DIF). Most Americans think that there is a “fund” similar to the “Social Security Trust Fund” to protect their hard earned savings but in reality the DIF is empty. The DIF is running on fumes and inspiration. Banks are trying to fool the public that somehow the Fed and FDIC backed institutions largely of the too big to fail variety, can simply print or hope money into existence like wishing mules would turn into magical unicorns. Most understand even at an instinctual level that something is wrong here. Even the king of the Ponzi scheme Bernard Madoff called the current structure the biggest of Ponzi schemes. He should know.
Giant American Banking Deception, 3/13/11
If there's one person who knows a Ponzi scheme, it's Bernie Madoff, the perpetrator of the largest one in world history. And now, locked away in prison, he claims that it wasn't just him, or even just the financial sector. Madoff believes the entire US government is a Ponzi scheme. In an interview with New York Magazine's Steve Fishman, Madoff sought to "set the record straight," and unloaded on the state of financial regulation in the United States and the impropriety of the banks. He said Wall Street deserved a large share of guilt in bringing about the financial crisis, and that some bankers deserved to be indicted for crimes.
Bernie Madoff: ‘The whole government is a Ponzi scheme’, 2/28/11
Dominique Strauss-Kahn, managing director of the International Monetary Fund, has called for a new world currency that would challenge the dominance of the dollar and protect against future financial instability.
Dominique Strauss-Kahn calls for new world currency, 2/11/11
Now that it has passed Japan to become the world’s second-largest economy after the United States, China is considering the next step as a world power: making its money a global currency.
No one expects that to happen immediately. And even the Chinese government is wary of making some of the free-market moves that would enable the renminbi to take its place alongside the dollar, euro and Japanese yen as a fully convertible reserve currency.
In China, Tentative Steps Toward Global Currency, 2/10/11
In the US, there are still some fortresses of privacy. For example, communications between an attorney and a client are still subject to very rigorous protection from disclosure for almost any purpose. The state of California protects these communications better than any other state, and even conflicts with federal law in favor of privacy over disclosure. Doctor-patient relationships, priest-penitent, the marital relationship and a few others continue to be protected.
One of the most important things to keep private, however, is not protected, the ability to have financial and bank privacy. The bank-depositor relationship is as important as almost any other protected relationship. Economic control over someone creates the relationship of master and servant. If you are subject to scrutiny for every bank transaction, regardless of suspicion, you are threatened with that economic control and servitude. This is true regardless of whether or not the threat is carried out. Even though your private bank has access to this information, the private bank does not have the power to arrest, prosecute, seize assets, or enforce capital punishment. Forced disclosure of account information puts the information in the hands of those who have that power. If you do not like what one private bank does with your information, you can move to a new private bank. If you are a US citizen, you cannot move your money to a new jurisdiction if you do not like the economic control being used or threatened. Do you love them yet?
Bank Privacy... Not!, 1/24/11
Strange. On the day of the big budget vote, ATMs and online banking systems of the Bank of Ireland are down, according to the BBC. The bank says it's eager to quickly get everything up and running again, but for a public that's already extremely jittery -- replete with talk of bank runs - this isn't a welcome development.
Bank Of Ireland And ATM Systems Fail, Customers Unable To Access Cash, 12/7/10
It all started a week ago. National Australia Bank, one of the largest in the country, had a technical malfunction in its core system. Within hours, a simple problem had practically brought a large part of Australia’s banking system to its knees. It was a crazy turn of events.
You see, banks don’t use regular operating systems or database applications; they run specialty software that is intended to synchronize complex operations like cash deposits, overnight interbank drafts, central bank facilities, electronic transfers, credit card monitoring, and a host of sensitive data.
When something goes wrong, it can throw the entire system into disarray, and customers end up getting hurt.
What if your bank account disappeared?, 12/1/10
What the banks are up to, and the only solution to get them out, and establish a true sustainable economy!
Banksters Economy vs. Mathematically Perfected Economy, 11/15/10
HR 2487 requires that foreign banks not only withhold 30% of all outgoing capital flows (likely remitting the collection promptly back to the US Treasury) but also disclose the full details of non-exempt account-holders to the US and the IRS.
America Now Enforces Capital Controls, 3/28/10
Safe Deposit Boxes
The 50 U.S. states are holding more than $32 billion worth of unclaimed property that they're supposed to safeguard for their citizens. But a "Good Morning America" investigation found some states aggressively seize property that isn't really unclaimed and then use the money -- your money -- to balance their budgets.
Unclaimed property consists of things like forgotten apartment security deposits, uncashed dividend checks and safe-deposit boxes abandoned when an elderly relative dies.
Banks and other businesses are required to turn that property over to the state for safekeeping. The problem is that the states return less than a quarter of unclaimed property to the rightful owners.
Not-So-Safe-Deposit Boxes
Money Transfers
An hawala money transfer is a way to send money via a hawaladar or hawaladars, usually across long distances, at a far lower cost than sending money by wire or bank transfer.
Modern Hawala, 12/11/10
The Obama administration wants to require U.S. banks to report all electronic money transfers into and out of the country, a dramatic expansion in efforts to counter terrorist financing and money laundering.
Money transfers could face anti-terrorism scrutiny, 9/27/10
Bankers don't like us to know that:
The FDIC doesn't really insure bank accounts.
When a bank goes under and is taken over by the FDIC, instead of paying the $100,000, the FDIC just pays its own people to come into the bank and divvy up what's left of the bank's assets.
A bank cannot legally require a fingerprint as a condition of cashing a check. According to UCC 3-501(b)(2), they can only require you to: Exhibit the instrument (i.e. you show them the check); give reasonable identification, and evidence of your authority if you are cashing the check on behalf of someone else; and, sign the check, and make a written receipt for partial payment, or the surrender of the check upon full payment.
Banks do not loan their own assets, nor the assets of their depositors. They're prohibited from loaning their own assets, becasue that would violate Federal Reserve regulations; they're prohibited from loaning their customer's assets because that would violate General Accounting Principles.
Banks do not loan money; instead, there is an exchange of credit for credit, in which interest is charged on one side, but not the other.
When a bank makes a "loan," the money supply expands i.e., the volume of currency in circulation increases. Hence, inflation.
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