The financial institutions continue to fiddle as the Nation burns to the ground arguing about how they, not the US Government, are in charge of whom is eligible to receive the hundreds of billions of dollars given to them to disburse. And as the financial institutions continue to destroy lives by refusing to issue out the funds to small businesses, an extremely dark and insidious fact has come to light. Financial institutions stand to profit billions of dollars if their personnel die. I mean you simply cannot make this shit up. Wall Street banks own a form of life insurance called BOLI, short for Bank-Owned Life Insurance. The death benefit pays to the corporate owner of the policy, in this case the banks, not the employee or their family. Because it’s a life insurance policy, it has a lot of nice perks for the banks’ bottom line. The cash benefit of the policy builds up tax free while the policy is in force and the paid death benefit is free of federal income taxes. The bank is supposed to get the employee’s permission before taking out the policy but there is little evidence that employees know what they’re signing when a huge stack of papers is pushed in front of them on their hire date.
Many estimates peg the total value of BOLI policies at nearly half a trillion dollars.
Many within the financial sector are simply treated like cattle. In 2003 and 2004, the Government Accountability Office (GAO) investigated these policies for Congress. The GAO found that some corporations kept the life insurance in force even after the employee had left the company – nullifying any ability to consider him or her a “key” to the business. The GAO wrote: “Unless prohibited by state law, businesses can retain ownership of these policies regardless of whether the employment relationship has ended.” The GAO also found that multiple companies held life insurance policies on the same individual.
It is quite possible that National Association of Mortgage Field Services (NAMFS) members hold policies on their personnel although, to date, NAMFS continues to stonewall any questions on any subject including their refusal to release their non profit tax returns required by federal law.
Last Friday, the Wall Street Journal reported that JPMorgan Chase had experienced a coronavirus outbreak on its trading floor with more than two dozen traders sick and dozens more in quarantine. Despite that, Bloomberg News reported today that traders are still being pressured to come back to work with one out of every five traders back on the trading floor.