0 McCrabby Rants about bank fees - OUCH!!

 McCrabby needs to RANT....

Sometimes on the weekends, we get away from jobs topics for a day or two.  This is one of those days, because McCrabby needs to rant...    

Bank of America's CEO, Brian Moynihan, defended his bank's new $5 fee on debit cards, noting that customers and shareholders understand the bank has a "right to make a profit," in response to new caps on debit card swipe fees that the banks charge retailers.

The CEO stopped short of criticizing President Obama who had told ABC that banks don't have an "inherent right" to a "certain amount of profit."

"I have an inherent duty as a CEO of a publicly owned company to get a return for my

shareholders," Moynihan said.  Last week, when Bank of America released quarterly earnings, they announced a PROFIT of $6.2 BILLION.  McCrabby looked at the numbers and agrees that Moynihan has helped BAC turn a profit.  If he can do that for four quarters (and it's assumed the profits will go up by gouging his customers another $5/month), that would translate to almost $25 BILLION in profits. 

Moynihan said the bank had made the fee clear and transparent to its customers and noted the bank had given plenty of advance notice because the fee won't kick in until next year.  But he stated that the new charge was needed to maintain the "ability to be profitable" in an altered retail banking environment. He added that Wall Street reforms in the so-called Dodd-Frank Act will cost his bank "billions."

And, where does Bank of America spend some of that $5 charge they plan on levying on their customers? 

In an article last year, published by an investigative blog, http://www.opensecrets.org/, the following information was posted: 

"The Securities and Exchange Commission said that Bank of America defrauded schools, hospitals and dozens of other state and local government entities by illegally investing the earnings of municipal bond sales -- the bonds that pay for public services.


The company agreed to pay $137.3 million in fines this week. Overall, Bank of America has paid at least $428.6 million in fines for various legal violations since 2009.  But while being targeted by the government for consumer and corporate power abuses, Bank of America has spent millions of dollars attempting to woo state and federal officials through professional lobbying efforts and campaign contributions, an analysis by the Center for Responsive Politics finds. The company even has two corporate political action committees that target the levels of government differently.   


What's more, the banking giant has spent $6.52 million to lobby the federal government -- including the Securities and Exchange Commission, which led the fraud investigation -- on a range of financial issues during 2009 and 2010. This year alone, Bank of America has employed 21 professional lobbyists (most of whom previously worked for the government) who lobbied on nearly 70 specific bills and dozens of other federal government issues, federal lobbying documents show."

Moynihan added, “We have the best bank in the world, we do a great job for our customers.”

McCrabby thinks he meant "investors."  

Is anyone else tired of the greed and corruption in the news?  Senator Richard Durbin (D-IL) seems to be:  "It seems that old habits die hard for Bank of America," Durbin said in a statement. "After years of raking in excess profits off an unfair and anti-competitive interchange system, Bank of America is trying to find new ways to pad their profits by sticking it to its customers."

Is anyone else tired of the greed and corruption that makes new every day?  McCrabby had several choices he could have made to illustrate.  THE RANT GOES ON!!!

McCrabby

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McCrabby