Bank of America CEO: We Have a "Right to Make a Profit"

Originally posted by Daughter2
Banks can't cry about regulations when they benefit everyday from bailouts. If it wasn't for the FDIC after the great drepression or the current bailouts, there wouldn't be a banking system.

That is a good point. Any bank that was bailed out shouldn't exist anyway. Why don't people just use credit unions?

Keep this in mind. Banking is a game. If you stay, you pay. You will never beat a man at his own game. Thats what got Las Vagas where it is today.

reply to post by seabag

if I were to blame the gov't for anything regarding bank of america...
well, I would blame them for this.....
If I remember right, the gov't/fed.....just about forced bank of america to take on the remains of country wide...
and it's the costs of the lawsuits and the like now that is eating up their profit margin!!!

I second the thought that it's the duty of a bank to create profits.
System relevant banks should have the duty to provide feasible credits.
To big to fail banks should have the duty to not go bankrupt.

Originally posted by Skewed
Sure, they have a right to make a profit just like anyone else.
But, they do not have the right to screw people over to make a profit.

The people have the right to ensure they do not make a profit either, if they are so inclined. We have the right to close our accounts when the "investors" are put before the customers.

We have the right to make them go bankrupt. Let us make an example out of them, and show them what we have the right to do. Lets use capitalism's own rules against them.

edit on 6-10-2011 by Skewed because: (no reason given)

They do have a right to attempt to make a profit by any means necessary including, but not limited to, "screwing people over". But yes, you are right! We the people, as the consumers, hold all the power. If we could unite, so to speak, and stop funding companies that we have any distaste for, their right to pursue profits would be futile. This is what capitalism is, and if it is, in fact, run by an educated and unified consumer base that takes ownership in their lives, freedoms, and economy, it would be pretty close to perfection.

Thus, I do think that OWS, or what ever, is protesting in the wrong place for the wrong things. In fact, if it has any affect, I think it will be a negative one. It will further divide us, cause chaos, and scare bankers and who ever into tightening their grip on their money and power. Maybe it is just me, but i don't want a country in which freedom is limited by law, success is regulated by government, and our minds are consumed with class war fare. The fact is, if we wage war with the bankers, the corroborations, and the rich, who ever they may be, we will surly loose. Money is power. That is what gives it value. I say we shouldn't occupy wall street we should use the power we do have and boycott it.

Either way the protests should be directed towards us. It is us that allowed the corruption in our government. It is us that neglected our freedom. It is us that continues to pay these corrupt corporations. It is us that, as a whole, doesn't even give a damn. ...It is through us that all our problems arise. Let us change this. Let us be free in taking responsibility for everything. Let us tell Mr. B of A that he does have the right to pursue profits, but we control them.

To say they have a responsibility to thier shareholders makes me laugh, what about the customers that use the bank, they are the ones footing the bill. What is thier responsibility to them? To all BoA members I say pull out now, put your money in a credit union and keep your money.

reply to post by rcanem


Exactly!!!!!!!!!!!! I remember back in the days, of my father, (now 76), when banks were a town thing, it was supported by the people almost like a cooperative, the money used was the people's money and everybody or every bank member profited equally.

Then came the biggest scam in history and the profiteers of bank centralization, (monopoly) so some dirty Uber rich could profit from the hard work of others.

You are so right is not funny, what makes a bank succeed is the people that support the banks, the costumers, without them it will not be CEOs outrageous bonuses, boats and mansions.

What a joke the banking cartel has become.

I hesitate to say this but... I've worked in corporate banking and financial services for almost 20 years. Nope, I've never been a teller or on the front lines, I've always worked with high level executives doing PR, marketing, etc.

It seems like a hundred years ago but for a few years I worked directly for Brian Moynihan. Back in the Fleet Bank days... Anyway..... a few points...

Please remember that banks are a business / commercial enterprise operating in a competitive market in a volatile economy. The primary responsibility is to their shareholders and they do reward customer loyalty.

If a bank makes operational changes and you’re not happy about it, you are free to change banks. There are plenty of choices. If you like your bank but you’re not happy about operational changes... go to a branch “in person” and speak to the banker. Even the big banks are willing to work with a loyal customer.

Please remember... your front line staff i.e., bankers, tellers, loan officers, etc.. they are just employees. They are simply going to a job everyday for a paycheck every week. They do not make the operational decisions so... cut them some slack.

A bank is not responsible for your fiancés. YOU are responsible for your finances.

The math: The old swipe fee was 44 cents per transaction and the new max fee is 24 per transaction making for a loss of 20 cents per transaction, per customer. Assuming the average customer makes 25 debit card transactions per month (which personally I think is low), that is $5.00 per customer that BofA is losing under the new swipe fee guideline. By charging the customer $5 per month, the bank will make up for the lost revenue, then some. Trust me, they have done the analysis on transaction income vs. customer loss. It works out in their favor.

Interestingly enough... the $5 fee will not be charged to consumers who have debit cards and use it only at ATMs. ATMs have their own set of fees that are not effected by the new swipe fee rule. So... use your banks ATM and get “cash out” for all other purchases.

On changing banks... well, all you have to do is look at the history of banking and it's easy to see that all banks are connected to one another. Throughout banking history there have been continuous mergers and acquisitions. Does anyone remember the Bank of Boston? How about Baybank, Fleet Bank, Bank Boston, American Bank... all the same bank resulting in our BofA. You can jump banks forever, you will always end up in the same situation.

My personal opinion, although it seems like I am defending BofA... I don't agree with the change either and I would love to see BofA crash and burn

On credit unions: (I also posted this on the "Bank run" thread)

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 bank 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.

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, 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

Just some friendly thoughts and advice from someone who swims with the sharks

Originally posted by GringoViejo
I don't see anything wrong with what he said. Whether we like it or not, its true. I'm not saying banks are our friends, but the point of starting a company is to make money.

Banks make money by charging interest on loans. When a bank refuses to loan money, the bank loses its revenue source and has to find other ways to make money.

The fact that BA is losing billions with the FrankDodd bill indicates BA has be doing unethical operations.

It's time for natural selection (people choose to leave BA) to drive BA evolution. Those with debit cards should bank elsewhere.

I fired BA and you should too. It's easy. Don't waste your time occupying Wall Street. Pull your money out now and send a message that you will not stand for banker corruption.

reply to post by marg6043


Here's a question...

Is anyone here a member of a co-operative bank? If so, when was the last time you attended a member meeting? voted on a regulation/policy something?

Is anyone here a member of a commercial bank? Did you at least purchase some shares when you opened your account? If you did... when was the last time you attended a shareholders meeting?

Co-operative banks are for those who are interested in saving money, buying a house, etc.
Commercial banks are for those who are running a substantial business.

It is the responsibility of the "consumer" to research the bank before opening an account.

Just like these people who took mortgages way bigger than what they could actually afford... because they were pre-approved. Now they're in forclosure and they're blaming the financial institue? Give me a break! I don't know about anyone else but when I took my mortgage I compared several banks and went with one who fit MY needs. I also was pre-approved but I knew how much I could afford so the pre-approval... useless paper. I also read my mortgage contract before I signed it. Yup... took me several days to read it and google terms that I didn't quite understand. How many people actually do that? haha... I'm betting not many.

Originally posted by consciousgod

Originally posted by GringoViejo
I don't see anything wrong with what he said. Whether we like it or not, its true. I'm not saying banks are our friends, but the point of starting a company is to make money.

Banks make money by charging interest on loans. When a bank refuses to loan money, the bank loses its revenue source and has to find other ways to make money.

The fact that BA is losing billions with the FrankDodd bill indicates BA has be doing unethical operations.

It's time for natural selection (people choose to leave BA) to drive BA evolution. Those with debit cards should bank elsewhere.

I fired BA and you should too. It's easy. Don't waste your time occupying Wall Street. Pull your money out now and send a message that you will not stand for banker corruption.

edit on 7-10-2011 by consciousgod because: (no reason given)

Exactly. Take responsibility of your own finances instead of letting someone else do it for you

reply to post by consciousgod


The downfall of BofA was when their CEO got greedy and wanted to get into the mortgage business He was eying Countrywide for a while finally he got it for pennies on the dollars but the derivative crap was worst that he could bite and started to lose money for his "Shareholders" and have Fanny Mae buying back the mortgages at the expenses of tax payers.

That is what is making them lose money the fees is just a way to gouge consumers to make ends meet, the banks is in big trouble, so people be very aware of the events that is bringing this bank down.

Actually, back in 08 Ken Lewis wanted to broaden the service platform for its retail customers... BofA was never involved in sub prime lending.

Bank of America has taken write-offs of $5.5 billion because of troubles at Countrywide. Instead of a stronger capital base and more consumer lending power, BofA is trapped in a routine of fending off crisis.

They had set aside billions of dollars to clean up Countrywide's mortgage mess, including an avalanche of new disputes about faulty paperwork and foreclosures. It wasn't enough. The job of dealing with the delinquent mortgages is an entire army worth of employees. Most if not all of the financial troubles are the legacy of Countrywide, which originated 10 million of the 14 million loans Bank of America is managing.

That legacy is a burden not only for BofA but for the entire country.

Countrywide's bad mortgages are clogging the U.S. housing market, dragging down home values and slowing the recovery. They were a garbage bin. They were lending to anyone at any rate. If you were a consumer in the market at the time and you took a loan with Countrywide... then you are part of the problem.

Moreover, the Countrywide mess has tarnished Bank of America's reputation and put it back at the feet of the government not a year after it repaid its $45 billion federal bailout with interest.

"Countrywide was a garbage bin," said Richard X. Bove, a banking analyst with Rochdale Securities. "All they did was make loans they could to whomever they could at whatever rate they could.

If Bank of America hadn't made this acquisition, they would still be having problems, but nothing remotely close to what they have now.

Ken Lewis stepped down shortly after the absorption of Country Wide.

Let's boil it down to its most basic meanings.

1. I, a depositer, place and entrust my savings with the bank.

2.I, a depositer, have no say on what the bank does with my money, so long as he guarantees that I can withdraw my money anytime, and I will earn interet on my savings - up to the bank to decide, or I can switch to another bank if I don't agree with its terms.

The bank then uses my money to generate profits through lending, which is an universally agreed right of capitalist idealism that enterprise must make money. WIth such profits, it pays for its staff, taxes, etc, etc.

Capitalist idealism also dictates that the banks and enterprises must bear itheir OWN losses, and not force others to pay for their mistakes. Doing so will no longer be capitalism, but becomes daylight robbery.

3. But NOW, not only does the bank takes my savings to make his profits, HE WANTS ME TO PAY FOR ACCESSING MY OWN CASH!!!!

This is not capitalism anymore. It is another bank scam. And if the masses silently agrees to pay for the use of their own money which banks had already used it to make obscene profits daily, it will be adopted by ALL banks, and mankind will be ripoffed yet again.

Its time to middle finger up to the banks again. They have absolutely no moral ethics, let alone conscience.

reply to post by Skorpiogurl


Sorry I missed your post, until now, When my father was part of a town bank was back in the 60s, my father used to get paid by cash in those days he started to get paid by checks during the 80s and until the 90s he never owned a credit card, debit card or any plastic.

He got his first check book when his money started to get deposited by then the old banks were long gone and the chain banks took over.

My husband and I has been banking with the same bank for 25 years, is a credit union.

reply to post by marg6043


Yup, I certainly remember those days. The local town banker would actually come out to my parents house to discuss financial matters.

Those days are long gone that's for sure!

Credit Unions are most defintely the way to go. I am just anticipating tremedous growth in a very short amount of time for those institutions. As history shows, when that happens many times a quality organization will just go down the toilet operationally. Just can't become a big bank overnight and maintain the small town mentality.

I worked at Citizens Bank for years when they were "Not your typcical bank". Several years later and with RBS (Royal Bank of Scotland) and Sir Fred Goodwin stepping in... now they ARE typical struggling big bank with pissed off customers.

reply to post by Skorpiogurl


My daughter now works for a local bank here in my neck of the woods, she had to take the job or just go unemployed on her field, that involved research, she majored in biology and stem cell.

Sadly she has been sucked up by capitalistic ideas that whatever the banks does is good for the citizens, including outrageous charges to the customers.

When I tried to tell her how it used to be in the old days, she always comes back with comments like "mom we are in todays days things are different" and if you know what I mean is not arguing with that mentality, she has no clue how much we have degraded in this nations from the old good days.

reply to post by marg6043


Yeah well... the young and impressionable. I used to be that person too, working for a huge financial institution and guarding its reputation with my life! I drank the cool aid

You can't change the belief system of someone. Sooner or later she'll figure it out.

Bottom line it's a business and they want to be successful and make a profit, just line anyone in business. While I can understand the operational changes from a professional stand point, doesn't mean I agree with it as a consumer.

Right now I work for a community bank and we are jumping right on top of the "WE don't charge fees like the other guys" marketing. As will all the other community banks. CU's will sit quietly and absorb as many disgruntled BofA, Santander (formerly Soverign), Eastern (another used to be community bank), and Citizens customers as they can. They'll have a huge hiring influx, create a bunch of new divisions, open new branches and then fall off the cliff. Have a big lay-off, reorganize... eh, it's always the same.

reply to post by Skorpiogurl


Yes the bank my daughter's work is getting busy this days because the unsatisfied BofA customers, hopefully my daughter is living the banking system once she graduates from her new "career" as a nurse. thankfully she never wanted to make the banking her life time goal.

reply to post by marg6043


It's so funny that you said that. I always tell people "once you're in banking, you'll always be in banking"!

I don't know what it is.... the same players seem to constantly move from bank to bank to bank. I currently work with people who I worked with over 10 years ago at different banks. People I worked with 10 to 15 years ago are now CEO's of some of the top banks around. Hell, some of them have even started their own banks! It's terribly hard to break out of the industry once you're in it!

Hopefully she won't stay in the industry too long!