Posts by Jamie Morgan72

Michelle Nelson4 said:Have you actually sat down with the bank's financial statements and tracked those specific line items for foreign exchange gains? Like, do you know exactly how much they were? For all the major banks involved? Over what specific timeframe?
Or perhaps you've spent some time digging through the Federal Reserve regulations regarding bank currency exposure—knowing exactly what the limits were back then and if any institutions were cutting corners? Did the Federal Reserve flag any irregularities? That part is actually quite easy to verify if you know where to look.

I'm sure you have all this documented and ready to go, since you're making such bold claims about them reaping "extra" profits solely based on the exchange rate (which, by the way, would require some serious quantification to define what "extra" actually means here).

I remember asking these exact same questions on this forum years ago and never got an answer. Maybe now, finally, I'll get some clarity…

By pure coincidence, I happened to glance at a certain bank's financial reports, yes. Look, the Federal Reserve doesn't care about the Swiss Franc—but the bank, on the other hand, does, because they leveraged the Swiss Franc to pad their coffers for future Euro-denominated placements. By the way, the regulator for those types of placements isn't even the Federal Reserve, given its jurisdiction.

When I say "extra" profit, I mean anything outside the realm of what was predictable given the historical movement of the Swiss Franc. Before 2008, things didn't oscillate like this. However, the red flag signaling this "extra" windfall was the fact that starting in 2005, the Swiss Franc began acting as a "safe haven" currency—something the banks recognized immediately, yet failed to mention to consumers. Financial institutions are well aware of what being a "safe haven" implies for their bottom line.

I have my facts just as clearly laid out as you have your delusions about people knowingly choosing loans that would eventually cost them three times the original amount—because, obviously, everyone's life goal is to pay triple for a loan.

Richard Taylor3 said:Look, your loan had that Swiss Franc currency clause, and you happily signed on the dotted line, probably laughing at the people who were choosing loans in Euros. Now, everyone else is stuck picking up the tab for your debt—especially the people who never even took out a loan themselves. It’s almost poetic, isn't it? It feels like pure communism.

A loan tied to a currency clause, coupled with the fact that the bank clearly knew they were predatory toward consumers.

I think generalizing this as people "carelessly taking out loans just for lower rates" is a bit much. These Swiss Franc Loans were essentially shoved down people's throats as their only option. It was basically presented as, "This is the only credit you qualify for, so take the Swiss Franc or start biking to work."

As for who is actually paying for what happened today—it's the bank. They made an absolute killing off the surge in the Swiss Franc exchange rate, which allowed them to pump that cash back into the money markets and rake in interest. So, the one who actually profited is the bank, and even after everything is settled, they'll likely still be sitting on a massive surplus.