Funny how plans come together.
Just a day or so back I reported on a huge, admitted fraud perpetrated on you, the American public, by Citicorp (Incidentally, in my opinion the absolutely worst bank to deal with in the Philippines … it would take a couple more articles to detail all the dirt I have on them here in the Philippines).
Then, what do it I see in my headline grabber this morning?
The credit ratings agency Moody’s has downgraded 15 banks and financial institutions.
UK banks downgraded include Royal Bank of Scotland, Barclays and HSBC.
In the US, Bank of America, Citigroup, Goldman Sachs and JP Morgan are among those marked down.
BBC business editor Robert Peston reported on Tuesday that the downgrades were coming and said that banks were concerned as it may make it harder for them to borrow money commercially.
"All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities," Moody’s global banking managing director Greg Bauer said in the agency’s statement…
You really should read the whole article, especially the paragraphs about “risk”.
People often ask me about “safe” investments in the Philippines, relative safety compared to the USA, etc.
At the same time they are obsessing about ‘safety” in the Philippines, they have their money in “name-brand” US banks … who are now being forced, slowly but surely, to stop hiding the fact that they are hugely “high risk” and dangerous under today’s “bankster” laws which do not, in my view, offer adequate protection to consumers …like you and I.
There are risks associated with Philippine banks as well, but frankly, the banks her are much more conservative and managed much more tightly than US banks today.
One reason there was essentially no “world-wide economic crisis” here in the Philippines is that Philippine banks can not take the risks that US banks openly take (and get downgraded for).
I recommend a Federal Credit union for the US side of your banking needs. They are much better regulated and attuned to consumer needs. They are not allowed to go into the derivatives and other junk investments that US banks are currently saddled with.
Is your credit union federally chartered? I should be, if you don’t know, ask.
Also, a comment here speaks of banking and privacy. There is always a risk, anywhere, involving privacy. But Philippine banks have rigorous, iron-clad privacy regulations, even tighter than Switzerland’s.
US banks routinely sell your information to the highest bidder. Just read your terms of service if you don’t believe me.
In the Philippines, this will not occur. Plenty of negatives about living here, but that is at least one positive.