Thursday, September 29, 2011

After Bailing Out Bank of America, The Bank's Latest Plan Is To Charge You For Using Your Own Money

Let's recap.

Greedy bankers bankrupt America with liars loans. When the scheme goes Ponzi and they run out of loans and money- not only do they avoid going to jail, but they manage to avoid bankruptcy by plundering US taxpayers for billions. They socialize their losses. They have helped pitch the world into a depression.

Their latest trick? They are going to take your money, give you nothing for depositing it with them, and then charge you 5 bucks a month to spend it. Everyone with a bank of America account should close it NOW.

It is time to quit doing business with crooks.


Anonymous said...

I usually nod in agreement with your postings but I can't on this one.

Since when is it criminal to offer a service for a fee? The fee structure is changing because the government decided to set a limit on interchange fees by fiat rather than let the market set a fee (Dodd-Frank finance regulations).

Well, the market has adjusted to the new constraint and so you are seeing monthly service fees paid by the consumer rather than transactional fees paid by the merchant (and indirectly by the consumer).

Seems to me the problem here is the arbitrary price setting by the government.

If the debit card fees are too onerous, then just use cash. Asserting that bankers are greedy crooks because their business model, shaped by the infinite wisdom of Congress, isn't a match to your sensibilities seems childish to me.

Or you can blame Congress. I would be OK with that.

Brian said...

Good comments.

From a historic perspective. Deposits allow banks to lend. They are able to loan 9 dollars for every dollar they actually have on deposit. In other words, banks are loaning non existent money and charging interest. They are the beneficiaries of depositing money. They also, in this environment, refuse to pay you anything for your deposits- yet they charge 4 and 5% for loans.

What many people don't understand is that banks- have caused this entire problem. Instead of taking their medicine- and going out of business, bankruptcy- they were able to socialize their losses. They don't socialize their profits do they? No. So now that they have gotten themselves insolvent, they are trying to find ways to get whole.

They SHOULD be paying us to deposit. We are doing them the favor. Not the other way around.

davecydell said...

Interesting that Thursday BAC announces $5 a month debit card fee and Friday the Nobama admin announces they will charge a new fee on big banks.