Banks Are Scared of Their Own Investors

When making an investment decision, prudent investors seek to understand exactly how a company makes its money and what risks, current and future, could derail the company's earning potential. To do that, investors of public companies need information. 

Banks apparently don't see it that way. Quietly hiding behind industry lobbying groups, banks are fighting regulations that would require increased granularity in fee income sources in their quarterly financial reports.

After witnessing banks like Wells Fargo (NYSE: WFC  ) and Bank of America (NYSE: BAC  ) pay hundreds of millions of dollars for malpractices surrounding these very fees, and as TD Bank (NYSE: TD  ) pre-emptively refunds customers before regulators force the issue, it's clear that this granularity is needed.

In the video below, Motley Fool contributor Jay Jenkins discusses how the new regulatory landscape is more pertinent than ever for investors, as the risk of millions of dollars of fines and reputation risk to the franchise warrant the increased disclosures.

With so much of the financial industry getting bad press these days, it may be a greedy when others are fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 28, 2013, at 2:08 PM, yaovk wrote:

    It is time to reign in the banks before they enrich themselves obscenely another round with public money by bringing havoc to our economy. The taxpayers have suffered enough financially through the savings and loans scandal and the recent mortgage crisis. I would venture to say this republican congress will do anything to water down any regulations to control the banks malfeasance, after all these scandals were brought about under republican administrations to enrich their rich sponsors. They would of course deny their "laisser faire" policies were responsible for these scandals.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2549531, ~/Articles/ArticleHandler.aspx, 9/24/2016 7:07:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
BAC $15.52 Down -0.08 -0.51%
Bank of America CAPS Rating: ****
TD $44.15 Down -0.45 -1.01%
The Toronto-Domini… CAPS Rating: ****
WFC $45.74 Up +0.02 +0.04%
Wells Fargo CAPS Rating: ****