Free Market Evaluation - Send us your resume and we will give you free feedback
Reed v. Town of Gilbert Supreme Court Ruling Affects Local Sign Codes
Reed v. Town of Gilbert Supreme Court Ruling Affects Local Sign Codes
Locke Lord Inherited Problem Case from Edwards Wildman
Locke Lord Inherited Problem Case from Edwards Wildman
Citizens United Required to Provide Donor Information
Citizens United Required to Provide Donor Information
Judge Dismisses Central Argument in Transgender Student Restroom Dispute
Judge Dismisses Central Argument in Transgender Student Restroom Dispu...
Legal Job Listings
Download PDF

Firm: Banks Are Banking Off Dead Employees View Count: 73

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
Assistant General Counsel
USA-MO-Saint Louis
Title: Assistant General Counsel   Employer: American Association of Orthodontists Location: St. Louis Compensation: Salary Travel Requirements: Moderate; domestic. Contact: Sen...


Apply now

Related Posts: