Promote Your Attorney Profile on Law.net - Get Found / Earn More!
Tiger Costume Fools Police, Man Charged with Possessing Bestiality Porn
Tiger Costume Fools Police, Man Charged with Possessing Bestiality Por...
David Tresch Sentenced to 27 Months in Prison
David Tresch Sentenced to 27 Months in Prison
Joan Rivers’ Daughter Hires Law Firm to Investigate Her Death
Joan Rivers’ Daughter Hires Law Firm to Investigate Her Death
Lawsuit Could Shake Maine’s Quarantine Laws
Lawsuit Could Shake Maine’s Quarantine Laws
Legal Job Listings

Firm: Banks Are Banking Off Dead Employees

It's a bank, silly.One Houston law firm has begun a probe across the nation into banks they allegedly insure the lives of their employees without their knowledge or consent.

Bank of America, JP Morgan Chase, and other big banks have bought bank-owned life insurance policies, according to a statement from the Clearman Law Firm. Wells Fargo, Citi Group and Wachovia were also mentioned. With bank-owned life insurance, a bank names itself as the beneficiary of life insurance policies covering its employees, said the firm.

Typically, a bank will buy a policy on a smaller group of officers and directors, using the cash value and proceeds to recoup benefit expenses.

Almost half of all banks in the US own bank-owned life insurance policies, which amounts to around $120 billion in value. Many bank employees “have been laid off, and yet the bank still stand to benefit financially when those employees die,” said attorney Scott Clearman.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Wal-Mart got in trouble for this a few years ago. In fact, it’s a common corporate practice. While it seems distasteful, the truth is it’s just a form of investment. The employee on whom the policy is taken out is not exploited or endangered.

It would still be nice if employees could opt out, however.

Firm: Banks Are Banking Off Dead Employees by

  • Fred

    So it just gives them another reason to work you to death.

Tagged: , , , , , , , ,

Posted by on January 22, 2009. Filed under Home,Legal News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

 

 

Job of the Day
Employee Benefits Attorney / Consultant
USA-DC-Washington

  This premier consulting firm offers a good long-term opportunity with equity participation along with the best overall benefit plans of any national consulting firm.  They also offer an...

Related Posts: