A blog post we wrote Friday about Bank of America’s thrilling new $5 customer debit card fee inspired a slew of reader comments, including an argument that’s become popular among the Fox News crowd: Blame the government!
The Dodd-Frank law, you see, lowered fees that debit-card companies can charge retailers, and so, the argument goes, BofA (and other banks) were forced against their will to make up the difference the only way that was available to them: by squeezing customers. That argument is pure, unadulterated nonsense and here’s why: It assumes that banks, or any other large businesses, are somehow entitled to a certain profit margin and can gouge away at will to keep it, customers be damned. It never seems to occur to corporations — and many conservatives — that a company’s shareholders should have to eat the loss, rather than already over-gouged customers. If BofA CEO Brian Moynihan thinks his shareholders would be angry about lower profits, just wait till he gets a load of the customer fury over the bank’s latest bit of gouging.
Conservatives’ subservience to big business is one of the things about them that I have never, and will never, understand. A huge corporation is not the same as “free-market capitalism,” and in fact the BofAs and Exxons of this world are the enemies of small businesses, judging by those corporations’ ruthless squashing of local small-scale businesses nationwide. It’s easy to blame the government for everything, but the banks dug their own graves in recent years, and now they expect the rest of us to dig them back out.
I say let ’em crumble — wouldn’t that be more in keeping with free-market principles, since the banks have pretty much royally pissed off the whole world? As we wrote last week, the banking Overlords, with their new debit card fees, are practically begging you to move your money somewhere else. For crying out loud, take ‘em up on it.
- Courtesy Keith Tucker at whatnowtoons.com
This article appears in Oct 4-10, 2011.
Agree what you say about Dodd Frank with exception that no conservative has said banks were forced to squeeze it from the customer. They chose to squeeze the customer when the gov’t forced them to stop charging retailers. I left BOA years ago because they are crooks, so no love lost here. They are not entitled to profit, but have the right to go for it anyway they want. And if you and previously I leave them, that is a risk they are apparently willing to take.
Bank of America’s stocks have dropped to an all time low. As of a few days ago (last time I checked) they were at 5.84 . That is less than a quarter of what they once where. Stockholders have lost faith and by charging this fee they are looking to calm there investors or would be investors. They are entitled to a profit. But if your loses are caused by bad purchases! Incompetent loan officers and such then you should close because you obvious are incapable of doing business in the real world. Don’t write so many bad loans! Don’t buy companies for the sake of becoming the biggest especially when more than three quarters of the purchase is at a complete loss. This alone should make it’s customers RUN from those hallowed walls of greed.
I know multiple wells fargo/wachovia employees who have told me they have been SLAMMED this week with new accounts from people leaving BOA.
Granted they are starting a $3 debit card charge too, but don’t have fees in a ton of other areas versus BOA.
What would you consider a fair price to pay for a debit card for purchases and access to cash via ATMs? Also, how much are you willing to pay for a checking account, savings account, online banking, mobile banking, online bill pay, intrabank transfers, etc.? Note that banks are required to pay the FDIC to insure the deposits in your checking/savings accounts – so it can’t be ‘nothing’. Also keep in mind that the company has expenses for the people that work there, research & design, infrastructure (banking centers, ATMs, offices, technology, etc). Also, don’t forget losses we incur for lending to customers that don’t pay back on loans (credit card, mortgage, car, etc.). Let’s assume the bank does not have to borrow any money to pursue it’s lending activities so there is no interest expense hitting the balance sheet. Finally – understand that the bank MUST turn a profit. I work in banking and I am honestly curious to see replies.
I have been trying to deal with be “fee-raped” for about 3 years now with Bo A..The $5.00 debit card fee is the straw for me. They are so AROGANT as to think that they can continue this behavior and maintain the account holders that they do.THIS is why people bury money in mason jars!! Im not close minded , but Im done helping them.The cons outweigh the benfits in this sitch with me.
BoFA is going under….been a long time comin’, but its comin’….just wait & see. Should have stayed NCNB – well maybe not, NCNB is who sued us and we counter-sued in the 80’s and WON…(but still lost atty fees etc. (small busines) ANYONE REMEMBER FOUNTAIN ODUM???? GOOD MAN !
What are BofA’s fees for money transfers of $100 million or more?
http://michaelfury.wordpress.com/2010/09/1…
This does not surprise me at all. Now BOA is getting out of the lending business. Good. Would love to see them fail. I have been dealing with this bank since May dealing with a short sale on my home. If I worked the way things are “progressing” on this short sale I would have been fired.
Grooms supported forcing regulations on banks that ate into their profits and then acts surprised when the banks find new ways to make up those profits.
I’m going to go ahead and assume the irony is lost on John Grooms
Fees for banking? How about none. Banks make more money from customer’s money. I refuse to pay for that shit. OH, but the banks provide me with such great “service”. Bitch please.
The government has taken money from the banks and given it to the merchants. Will the merchants of the world lower there prices? No, they won’t. So now merchants profits have gone up, since they do not have to pay as much for merchant services. Make no mistake, banks and credit unions give us a service. We pay for services all the time: phone services, cable services and so on, we think nothing of it. So why should people be so upset to pay 5$ for the service of someone safeguarding our money? I have had fraud take place on my account in the past. With BoA, they called me to inform me of some suspicious activity on my account. I appreciate that kind of service, and I am willing to pay if needed to have it. When I read about so many people being upset, I wonder what the real issue is. I know I take care of my accounts, I have not experienced overdraft fees. I don’t pay a maintenance fee on my account currently, but I do feel the services they provide me are of great value. I looked it up, the $5 does not apply to everyone or every type of transaction. I don’t see what the real big deal is. Another service is auto insurance, you see nothing for it, it’s just a safeguard. The value is just peace of mind, just like me having my account at BoA.
Talk about fees my wife has an account with this bank she wrote me a check and for me to cash it they wanted $7.00 and my fingerprint and i,m a co-signer on the account.