Banks’ Billions: Shame

By Shlomo Maital

   HSBC (Hong Kong & Shanghai Banking Corp.), based in Britain,  is Europe’s largest bank, by assets, with widespread business in Asia.

    Ever wonder what the impact of the US Federal Reserve’s panicked interest rate hikes was?  Copied by the European Central Bank and nearly everyone else, including the Bank of Israel?    Stamped out inflation?  Not quite.

    Obscene profits for the banks.  Such as HSBC.  Here are the numbers:

    HSBC’s net profit more than doubled to $18.1 billion in the six months ended June, a sharp spike compared to the $9 billion in the same period a year before.

       The bank’s profit before tax rose 147% year-on-year to $21.7 billion, up from $8.78 billion in the first half of 2022.

     HSBC’s board approved a   dividend of $0.10 per share, and announced a further share buyback of up to $2 billion.  None of the profits will drive investment and job growth.

      In short – Central Banks delivered a windfall of profits to the banks, which then divvied them out to shareholders.  And the middle class who have mortgages?  They are hit hard, and their higher payments go straight to the pockets of the banks’ shareholders.

       Where are the regulators?  If the banks are making billions in profit through higher interest rates, are they paying us higher interest on our deposits?  Because the money they make, is made on our money deposited with them. 

   No.

     It is not just HSBC.  ALL the huge banks are raking in the money, billions and billions of it.

      And the worst part of this is – nobody protests.  It is as if this is how capitalism works, how it always works.

       There ought to be a law.