Let me start this, my first post in a long while, by saying that because of my experiences with Bank of America, I am definitely not a fan of Bank of America.
In short, I found their customer service to be non-existent. Their tellers are… condescending at best, and more times than not – just plain rude. And don’t even think of applying for a loan from them unless you have enough money to buy the bank.
All of this said, I am completely on their side in this idiotic onslaught of the media and these “protesters” (read George Soros and MoveOn.org rent-a-mob morons).
What has Bank of America done wrong? They are paying bonuses that they are legally obligated to – and if they didn’t follow through on those contracts? They would be faced with litigations that would cost them millions to defend and they would still have to pay those bonuses. These are bonuses which were legally negotiated to bring high quality people to Bank of America, and in turn those people earned Bank of America a lot of money. Money which made Bank of America a more viable institution and better investment for all the various entities who invested in Bank of America. I hope I am not loosing anyone yet.
Ok, well I will forge on – wanna guess who some of those investors are? Union pension plans, teachers’ pension plans, government pension plans… wanna guess whose IRA’s and 401K’s are taking a hit and who, when they figure this out, won’t put two and two together and realize they are the cause of their own destruction? The very teachers, union members, IRA, and 401K owners who are screaming about how vile Bank of America is for paying these bonuses. I doubt that they were bitching when Bank of America’s stock was leading those same investment instruments.
This brings me to another issue that the business of any company is to make a profit, and as Bank of America is a business entity; its primary mission is to show a profit. Without a profit the employees won’t have jobs, the shareholders (those teachers, union members, government employees, retirees… whose pensions have been invested in business entities like Bank of America) will not have anything more than what they have been able to stuff into their mattresses.
Where am I going here?
Well, like I said: Bank of America is in business to make money and how they do that is operating as a financial institution.
Now, let’s look at one of the latest problems facing the US banking and financial system: HR 4173 – Dodd-Frank Wall Street Reform and Consumer Protection Act.
In a nutshell, this is legislation that is completely detrimental and harmful to the banking system and ultimately, by extension – the US banking consumer.
How?
Well, this “financial regulatory reform act” imposes all kinds of new charges and taxes on the banking system while at the same time forcing it to reduce charges to its consumers. Now, one of the amendments included in the Dodd-Frank bill was placed there by when it hit the Senate by Illinois Senator Richard Durbin. This amendment mandates a reduction in transaction fees and 44¢ to 24¢ every time a credit card’s swiped.
What was the expected cost to banks for this reduction to the US banking system? 14 Billion dollars a year.
And it is specifically this cost that caused Bank of America to institute a monthly $5 charge to use their debit card.
So what happened when Bank of America tried to recoup these costs?
Everyone begin whining and complaining about how Bank of America is mistreating their customers – let’s get real, Bank of America is only doing what it is SUPPOSED to be doing : protecting its revenue flow, protecting its shareholders, and protecting the investments pension plan managers have made on behalf of their clients.
Senator Dick Durbin even went to the floor of the US Senate and called for the customers of Bank of America to “Get outta that bank! Go to a smaller community bank where they’re not charging you these fees and ripping you off,”.
Which is real sad when you think back and realize that it was his amendment that brought all this about in the first place.
Your a fu(king a$$hole and donnt know WTF your talking about! BoA is fu(king thifes! And you shud be convected with them for collaberation!
Sometimes… and yes I know that I should not have approved this comment, or at least cleaned it up – but I think it would have lost sooo very much of its dynamic strength and purity of thought if I had…
A comment for “kill the rich”…who do you think creates jobs? I have never worked for a poor person, or corporation. People and corporations hire others to work for them. They take the financial risks that come with owning and operating a business. If they accept these risks, don’t they deserve to make a profit?
Pure and simple, banks are in the business of making a profit. They aren’t there just to hand out money…it’s called a business. Part of that is taking risks with the money they have access to in order to make a profit.
If you want to be rich, go get a job, save your money, and start your own business. Of course you will be running the risk of failing. Look up the histories of most successfull people. You will find that many of them failed at several businesses before they got it right and became successfull. KFC is a perfect example…”Colonel Sanders” failed miserably several times before he got founded KFC and made a bunch of money.
In spite of what is commonly taught these days, the free market is not inherently evil. It is what has made the US.
Mark,
Thank you – could not have said it better myself!
I guess this is all tied to those protesting “Big-Business” and “Corporate Greed” under the assumed names of “Occupying Wall Street” and “Occupying L.A.”
It amazes me how the people who most depend on the taxes, paid by those greedy corporations, for the programs they hold near and dear to their heart, are the first, and loudest to attempt to inspire the lynch-mob.
(Are you following me here, Kill-the-Rich? Before you go spouting your opinion, it helps to formulate one first.
Anyone can type %!$%^@. But then again, if you want to advertise your lack of an identifyable I.Q., this is a free country, and the owner of this blog is gracious enough to include your diatribe; even if it means the rest of us must suffer for it.)
I do believe I understand “Kill-the-Rich’s” position however. Just think of how blissful life would be if we could eliminate Corporate Greed. The nation does not need the jobs provided by Big Businesses. Afterall, aren’t jobs simply an evil byproduct of Big Business?
INCOME? We don’t need no stinking INCOME! KILL THE RICH, and pass the gravy.
OMG! Thank you my friend for finally writing something – I have missed you!
I read this and wished I could add something to it but I can’t! You are so right! With only a few words you explained this so that even a child could understand it.
Maybe that is why “kill the rich” couldn’t grasp the concept – I think you need to dumb it down for them and their friends.
I heard about this and how people in New York are protesting the greed and coruuption and how The Bank Of America was paying ex-exucutives and I wondered why they would pay someone even after they were gone but I think I understand it now. The bonuses that The Bank Of America is paying them was part of the deal that was signed when they went to work for The Bank Of America. If that’s true then The Bank Of America owes them the bonuses because they promised them these bonuses. There isn’t anything wrong with that.
Really enjoy your blog, wish you would write more, you do know what you’re talking about, but on this, you’re only half right – you should have written about about all the ways that this administration is doing everything it can to bring Communism to this country.Taking over the financial and banking system is one of the first things they need to do to control this country.
Due to the incendiary and threatening nature of the majority of comments to this post – I will no longer be allowing comments to this article.
Since the vast majority of comments have not been related to the subject matter herein but instead have run the gamut including two death threats, I will no longer approve for publication any comments on this subject.
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