Bank Run

I'm not going to advocate a bank run. I think that may be illegal and it is most certainly a violation of ATS T&C. However, in the spirit of advocating vitally needed change, I would like to suggest --- yet again --- that people move their banking out of the mega-banks and into smaller community banks and credit unions. Yes, I know there is a hassel involved but if we truly are supposed to be the activists and not members of the Sheeple is that really too much to ask?

With BoA and now Citi raising fees on the most basic services, and with the others coming down the pike, exactly how long are we going to allow them to just take? They helped screw the economy by their actions and by the looks of their earnings, profits and bonuses, their previous irresponsibility and malfeasance hasn't seemed to have hurt them. They were bailed-out because Washington *said* they were necessary to help stabilize the economy to affect a recovery. But their lending to businesses has been, at best, anemic; their homeowner assistance programs have helped a tiny fraction of the people the programs were designed to help; they have gone right back to BAU once they got what they wanted; and yes, money is flowing like water in the boardrooms.

So yea, there's a small inconvenience in changing banks. In marketing we call this 'barrier-to-exit'. It is, of course, intentional and by design. The TelCo's learned from the long-distance wars of the '80s and '90s that people couldn't be allowed to simply change providers without some pain. Back then, a competing company could send you a better offer and change your long distance service as easy as pie --- often by your simply depositing an enticement check they send you. So lots of folks ping-ponged between providers with each better offer. It was very expensive for the LD providers to wage this war and lessons were learned. I know because I was there and saw it first-hand. This is largely what led to 'early termination fees' in wireless contracts. This avoided a repeat of those LD wars since you can only change providers once your contract is up.

Banks use inconvenience as their barrier-to-exit. They know you usually have multiple bank products, possibly linked, and you have checks floating out there probably so it's a hassel. Moving a mortgage or loan may be a hassel but your day-to-day banking is no big deal. I got evicerated when the economy up-ended. In the ensuing chaos BoA screwed us in a number of ways and there are class-action lawsuits pending on many of those bogus practices. At one point my household had 4 checking accounts, 2 lines of credit, a credit card, 2 savings accounts, an aircraft loan, a student loan and a mortgage with BoA. We paid-off or transferred all our loans (except our mortgage which we can't refi) and credit card, closed our checking accounts and moved to a small community bank. I get free checking, free online bill pay and they actually have a rewards program. There aren't as many ATMs as BoA but with just a little pre-planning it isn't any real inconvenience. I'm paying less bank fees and couldn't be happier with the service I get.

So, this is our time. Bite the bullet for the cause. It doesn't matter how much or little you have. Waves of account closings DO get noticed. There isn't much we 'little people' can do to hurt the mega banks but this is something we CAN do and with large enough numbers will have an impact. Screw the big bailout hogs. Move to a community bank. Do it now!

reply to post by jtma508


No need for a bank run.

Everyone just needs to do business locally. Use a local credit union, or a hometown bank with local lending authority. Get away from giant conglomerations.

That is good advice for any commerce. Keep as much of your money in your own community as possible. Support your neighbors and friends and friends employers. Stop supporting global cartels.

That is better than a bank run.

reply to post by jtma508

Might work in the US, not here though (Holland). There are only big banks and The Law states that all wages must be paid directly into a bank account, no cash allowed. Eventually the smaller banks get bought out, even if they don't want to be. Back to square one. Sorry for the negativity, just saying it how I see it.

I got so tired of BOA stacking my debit transactions (in order from biggest to smallest amount, no matter if the transaction was done the same day or days back...) I remember watching them put 5 different transactions (all under $10 each) in pending for an entire week. The lower my account balance, the longer the transactions would pend. It soon became apparent that should I overdraw just a little bit, it would have meant 5 times $35 in fees.
Time after time.
I never allowed them to take a dime in fees from me, but I got so sick of having to monitor every little thing they did. Once, they charged me some mysterious $25 fee which overdrafted me twice. They claimed I had signed up for some credit-monitoring crapola, which was, of course, false. I had to fight to get them to refund the amount, plus the $70 in overdraft fees. Disgusting.
Since I don't own thousands of dollars, I ended up closing my account and going bank-free altogether. Best monetary move I made.

Agreed.

Credit Unions have had a good reputation for a long time but I would not recommend moving to one just yet.... If there is a run, the majority of individuals will most certainly move to a credit union once banks like BofA and Citi implement new fees for service.

That seems to be the trend right now.

Also, we are pretty much guaranteed that, while the other large banks may call it something different, all of the big hitters will follow suit . Even if they say they won't.

Anyway...

Credit Unions will benefit greatly from a bank run. However, they will out-grow their resources quickly.

Remember when Citizens Bank used to be that "Small hometown bank"?. They grew tremendously in a very short period and with RBS involvement all hell broke lose.

That was one example of a big bank with a small bank mentality.

For now, I would suggest a community bank.

Federally governed and publicly traded but small books and under seven or eight branches.

Let the Credit Unions catch up, operationally, their up-coming growth before putting your green in their hands.

Although, if you wanted to make a good investment right now, I'd say Credit Unions are the way to go... short term anyway

FYI: I have worked in banking for over 15 years. I've worked for huge multi-billion dollar financial organizations and I've worked with the small fish too. I've been through audits and have worked with the Fed on more occasions than I wish to admit.

Just some friendly advice from someone who swims with the sharks

Excellent post with great information.

My money has always been in my local CU. The employees there know me when I come in. I feel I get a much more personalized banking experience and I definitely pay less fees. (In my case, none.)

Excellent thread OP. S&F'd...

Get your money out of the big banks people!!! They are all criminal entities and keeping your money with them just makes it easier for them. Let them all bleed.

Originally posted by bastet11
I got so tired of BOA stacking my debit transactions (in order from biggest to smallest amount, no matter if the transaction was done the same day or days back...) I remember watching them put 5 different transactions (all under $10 each) in pending for an entire week. The lower my account balance, the longer the transactions would pend. It soon became apparent that should I overdraw just a little bit, it would have meant 5 times $35 in fees.
Time after time.
I never allowed them to take a dime in fees from me, but I got so sick of having to monitor every little thing they did. Once, they charged me some mysterious $25 fee which overdrafted me twice. They claimed I had signed up for some credit-monitoring crapola, which was, of course, false. I had to fight to get them to refund the amount, plus the $70 in overdraft fees. Disgusting.
Since I don't own thousands of dollars, I ended up closing my account and going bank-free altogether. Best monetary move I made.

My god.

I've never had any of these problems with my credit union. Best decision I've ever made. Going bank free is also a good idea

What else are you advocating OP if not a bank run? Never mind trying to dress it up in politician speak! That said I am looking at a solid bank here in the UK - it's British and not tied to any of these big international conglomerates. They are exactly what banks used to be.

Sooner or later they all become to big to survive... You can spend the rest of your life jumping banks.

Also, all banks are tied into each other at one point or another. If you look at the lineage of one bank, you'll see that they have significant interest and/or holdings in a lot of other banks. Just because it's a community bank or a credit union does not mean they won't adopt big bank policy eventually.

Example:

The Massachusetts Bank became the Union Bank which became the Bank of New England which was re-named the Massachusetts National Bank who then merged with the First National Bank of Boston which was forced to divest its investment banking arm, the First Boston Corporation, who became Bank of Boston, who then re-organized under a new holding company, First National Boston Corporation who acquired dozens of regional banks i.e. Credit Unions and then once again renamed itself Bank of Boston who tried to aquire the failing Bank of New England but could not, incidentally they also tried to aquire Shawmut, but that collapsed too, so they went after BayBank. The combined bank rebranded itself to BankBoston in 96. In 98 BankBoston acquired Robert Stephens & Co from BankAmerica for around 800 million. This was the second largest acquisition in history. Meanwhile, Fleet Bank, who was originally Providence Bank, came in and acquired BankBoston on the heels of acquiring Shawmut Bank. At that point, Fleet Bank dominated the market yet maintained the old Bank of Boston brand in Latin America.

That combo was the eight largest bank in the United States at the time. Assets over $190 billion.

Finally in 2004, Fleet Boston was purchased by Bank of America.

So... what's next? Eventually another big hitter will acquire a piece of BofA, then another, then another.. then more mergers, more acquisitions. Who will be the next big player?

reply to post by starchild10


Hahaha, yep... sounds a lot like advocating a bank run to me.

Originally posted by jtma508
I'm not going to advocate a bank run. I think that may be illegal and it is most certainly a violation of ATS T&C. However, in the spirit of advocating vitally needed change, I would like to suggest --- yet again --- that people move their banking out of the mega-banks and into smaller community banks and credit unions. Yes, I know there is a hassel involved but if we truly are supposed to be the activists and not members of the Sheeple is that really too much to ask?

...

So, this is our time. Bite the bullet for the cause. It doesn't matter how much or little you have. Waves of account closings DO get noticed. There isn't much we 'little people' can do to hurt the mega banks but this is something we CAN do and with large enough numbers will have an impact. Screw the big bailout hogs. Move to a community bank. Do it now!

I keep all my money in a box in a undisclosed location. Your a fool if you still keep your money bank, all they do is steal it.

reply to post by TurkeyTots


Nope. A bank run is spreading rumors that a specific bank (or the entire banking system) is insolvent and advocating that people take their money out. What I --- and many far more august people --- are advocating is to 'vote with your feet'. Take your banking to community-based banks and credit unions.

The banking system today is alot like Detroit was in their hay-day. Their attitude was that they didn't have to do anything to change. They could cheapen their product, rasie their prices and we had no alternative to doing business with them. Well Detroit learned. Too late for most of them, sadly enough. And it's time for the mega-banks to learn, too. Let them know that they will not be bailed-out EVER again, that we will not allow them to keep sticking it to us, that we will no longer let them hide behind their benefactors in Washington. Like Detroit, the jig is up.

Take your banking elsewhere. Communit-based banks invest in the local community. They did not take bailouts and they have excellent customer service. Nothing wrong with that. This isn't 'politician speak'. It's plain-language. But if you'd rather keep lining the pockets of people who keep bending you over that's your perogative. Caveat emptor, as they say.

Originally posted by jtma508
reply to post by TurkeyTots

 

Nope. A bank run is spreading rumors that a specific bank (or the entire banking system) is insolvent and advocating that people take their money out. What I --- and many far more august people --- are advocating is to 'vote with your feet'. Take your banking to community-based banks and credit unions.

The banking system today is alot like Detroit was in their hay-day. Their attitude was that they didn't have to do anything to change. They could cheapen their product, rasie their prices and we had no alternative to doing business with them. Well Detroit learned. Too late for most of them, sadly enough. And it's time for the mega-banks to learn, too. Let them know that they will not be bailed-out EVER again, that we will not allow them to keep sticking it to us, that we will no longer let them hide behind their benefactors in Washington. Like Detroit, the jig is up.

Take your banking elsewhere. Communit-based banks invest in the local community. They did not take bailouts and they have excellent customer service. Nothing wrong with that. This isn't 'politician speak'. It's plain-language. But if you'd rather keep lining the pockets of people who keep bending you over that's your perogative. Caveat emptor, as they say.

Totally agree and it's exactly what I keep expressing but no one seems to want to hear that.
Seems to me that people would rather just sit around and bitch and complain.
Before putting your money in any bank, thorough research should be done. If you don't take responsibility for your own finances.. well... I don't know what to say.

It was inevitable that this idea would coalesce into action:

Time

A bank run would be a great idea on a national level to show how much money we have, what it is worth, and who exactly would be allowed to have it, out would also bring the all round change people say they want in government and banking. In showing our dollar for what it is, we could also show why it has been falling so hard for so long, by whose hand....


I thought that was all part of the goal for revolutionary change here lol