patrick.net

When the Too Big To Fail Banks are up to nogoodnik stuff, only the government can put an end to it. There is a plethora of regulators for these institutions. I chose to reveal "The Scam" to the SEC back in April. On their website for Whistleblowers, the SEC says it will: pay 20% of the monies they collect for enforcement penalties, coordinate with other regulators (like the IRS) and add their penalties to the amount to the 20% claim for the Whistleblower. So even though they have been wishy-washy when it comes to enforcement of rules and regulations with regards to the Big Banks they gave a compelling argument for going with them. I was hoping the SEC would take action without me having to go public with the Scam, but I have not heard back from them and I doubt they will take action unless the public forces them to.

Once someone knows "The Scam", they cannot un-see it.

With money market accounts they accumulate interest during the month and then pay this out as dividends to their shareholders on the last business days of the month. Wells Fargo and Bank of America instead hold these funds paid by the 3rd party money market funds until the first business day of the following month, when they are then paid into their customers' accounts. I am guessing that other banks are also following this fraudulent procedure. I know that some banks pay the dividends on the correct day. I do not have investment accounts at all the banks, so I am unsure of the other banks and whether they do this or not, but I suspect that some do.

This leads to the customers not collecting interest on the dividends paid for the extra day (or days if the last day of the month falls on a weekend). Thus, the banks are scamming their customers.

By knowingly paying on the first day of the following month, this leads to the amount of dividends for the December payout not being put on the correct tax year for the 1099 forms and/or an improper amount being recorded for the IRA account value. Some employees know this, so they are knowingly falsifying hundreds of thousands of tax records.

Since the funds from the money market accounts come into the banks on the last business day of the month, but are not put into customer accounts until the first business day of the following month, the funds show up on the banks' books for the last business day of the quarter. This inflates the banks' regulatory capital (the cash the bank has), its cash flow and reported earnings.

Prior to 2022, the amounts were insignificant because interest rates were so low. However, as the Fed raised interest rates and customers poured funds into the money market accounts...well things became material. There are now about $5.7 trillion in money market accounts, the interest rate is about 5% on those funds, and I estimate that each of the Big Banks has hundreds of thousands of customers with hundreds of billions of dollars in these funds.
The Big Banks send their customers account statements each month. Every customer can see whether their bank pays the money market dividend on the correct day or not. So there are plenty of witnesses.

I think the SEC is just too plain scared to take action against the Banks. So if you hold bank shares, know that the quarterly financials are probably inflated and that the SEC knows, but is doing nothing about it. If you hold money market funds at Banks that are scamming you, you may want to move the account to Fidelity or Vanguard where they pay the dividends properly. Charles Schwab also pays money market dividends correctly, but they are busy covering up their own regulatory Holodomor, so I can't recommend them.

If you are being scammed, let the SEC know what you think about them.

Also, if you let as many people know as possible, that would be awesome.