Conflicts of Interest:   Major conflicts of interest are at the core of the financial industry's problems.   Conflicts of interest are inherent in the banking system.   Here's why:   Any public service organization that is also designed to generate a profit has a huge conflict of interest between providing its intended service and making that profit.    

Again, that's not to blame anybody.  It is the system, itself, that's dysfunctional.   In the present system, profits come first, and because profits come first, those running the major corporations (including the banks) have no choice.   These people must generate a profit or get fired.  

Let's not focus on how the conflicts of interest have corrupted the financial system, but for those who choose to read about it, Please see the Notes and References page for a few of the ways  that conflicts of interest have corrupted the financial industry.  Instead, let's focus on the two options that can actually solve the conflict-of-interest problem  --  1)  either replace the existing system, or 2)  redesign it.

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What is required is a financial-service industry whose only interest is serving its customers.   How can that be accomplished?    By the use of non-profit foundations.    Non-profit foundations, by themselves, can be used to make major changes in the money lending business.   Here are some examples:

 How to End the Home Foreclosure Crisis 

(Cost =  About 300 billion dollars      Time  =  About six months)

 A New Way to Process Home Foreclosures  

(For those who cannot qualify as borrowers)

http://www.EconomicSanity101.com/bo-2-home-foreclosures.html#83

 Funding Governments without Taxation   

(An overview)

http://www.EconomicSanity101.com/funding-governments-without-taxation.html#83

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 Funding County and City Governments   

(And at the same time, provide auto, student, personal and
small businesses loans)

(Ending usury-level interest rates on credit cards)

(Imagine the federal bureaucrats practicing what they preach)

http://www.EconomicSanity101.com/funding-national-governemtns.html#83

These transitions can be made with relative ease and simplicity.   Why so simple?  Because we are not creating anything new.   Nobody has to learn anything new.   We are simply combining two well established legal businesses  -- home loan lending and managing a non-profit foundation.   The difference is that we are using this combination for a previously ignored purpose.  Thousands of people are available to be employed by these foundations.   The start up money, in the form of zero-interest loans, can come directly from the federal treasury.   This is by far the fastest,  least expensive and most benefit-producing  way to to resolve the present financial crisis.

Non-profit foundations, when partnered with profit-making corporations, can be used to transform the entire corporate world, including the financial industry.   

The Benefits of Foundations

In this solution, the banking system remains as it is with the exception of one simply change that will completely transform the entire system.    The change is to demand that banks be managed under  The New Corporate World Foundation's Win-Win Business Structure.    By partnering a non-profit foundation with each bank, and by  following the procedures described to transfer controlling stock ownership to the foundation, the money usually siphoned off to stockholders as profits can then be redirected to give corporate employees, corporate  customers, and the environment equal priority with making a profit.  In the new system, here is where the money will go: