The world’s banking cartel will gather $18 billion in fees for facilitating the settlement of small business Paycheck Protection Program (PPP) relief loans leveraged during the Covid-19 pandemic. The $640 billion in PPP relief loans stem from the CARES Act and allegedly there’s only $130 billion left for Americans looking for funds.
The Banks Will Acquire $18 Billion from Fees Simply by Processing PPP Loans
A recent report from the Washington Center for Equitable Growth details that financial institutions will gather close to 3% of the aggregate total of $640 billion in PPP relief loans just for processing the funds. The Washington Center for Equitable Growth’s (WCEG) policy director, Amanda Fischer said that banks stand to make $18 billion from the CARES Act from standard processing fees. “If we did it through a public institution, there would be [more than] $140 billion left,” Fischer stressed on Tuesday.
Fischer said that traditionally banks use the fees to cover the cost of risk provided that some of the loans turn out to be fraudulent. However, PPP loans stem from the government and the possibility of them accepting funky PPP loans is extremely low. “Basically it’s free money,” Fischer highlighted in her interview. Fischer also had shown that the fee processing is a nice lump sum of revenue for certain banks like JP Morgan Chase, which could acquire $864 million and New Jersey-based Cross River Bank stands to rake in $163 million.
The CARES Act: The Perfect Example of the American Government’s Corruption During Times of Crisis
The CARES Act has been controversial even before the bill was signed by Donald Trump when U.S. representative, Thomas Massie, told the public the stimulus bill bolsters a shroud of secrecy surrounding the Federal Reserve. The stimulus plan has also been under fire for incentivizing hospitals, as many hospitals, long term care centers, and nursing homes were facing budget issues well before the Covid-19 outbreak. A…