Bank of America using SWAT teams on customers
« on: October 19, 2011, 06:27:39 PM »
http://www.addictinginfo.org/2011/10/19/st-louis-police-reportedly-barricaded-bank-of-america-wouldnt-allow-customers-to-withdraw-money-or-close-accounts/


I'm not an economist or banking expert.  Can anybody offer a reasonable & sensible explanation why BOA is doing this?  And does anyone think this is fair practice?

I was told by my local bank today that BOA was trying to charge outrageous account closing fees in between Fed regulation crackdowns but I never expected this.


QUEEF BAG

Re: Bank of America using SWAT teams on customers
« Reply #1 on: October 19, 2011, 08:24:06 PM »
that makes me wanna make a sign and go downtown.


JohnRoberts

Re: Bank of America using SWAT teams on customers
« Reply #3 on: October 19, 2011, 09:16:18 PM »
http://www.addictinginfo.org/2011/10/19/st-louis-police-reportedly-barricaded-bank-of-america-wouldnt-allow-customers-to-withdraw-money-or-close-accounts/


I'm not an economist or banking expert.  Can anybody offer a reasonable & sensible explanation why BOA is doing this?  And does anyone think this is fair practice?

I was told by my local bank today that BOA was trying to charge outrageous account closing fees in between Fed regulation crackdowns but I never expected this.

I am not an economist or bank expert, but this sounds like horse hockey...

The occupy wall street organization is telling people to transfer funds to credit unions and small banks, from all of the major banks, because they are pissed off at big banks, and big business, and people with money. Sounds like a little targeted disruptive misinformation to scare and confuse others, and perhaps amuse themselves.

I am starting to think that congresses (actually Dodd-Frank's) plan to manage too big to fail banks, is to regulate them with the death of a thousand cuts (AKA regulation) until they are no longer big...

It might working.  D-F restricted what banks can charge merchants on debit card transactions, so banks had to raise their debit card feed to customers to pay for the program. If congress restricts that, I can't imagine banks offering a service at a loss.. only he government can perpetually lose money and get away with it (well it looks like greece isn't getting away with it any more).

 Of course I could be wrong. and opinions vary, ask those hundreds (thousands?) of protestors in NYC.

If they're pissed off at crony capitalism, they need to push back at the congress handing out all the slop, not the hogs at the trough, just being hogs. Congress is tasked with managing our tax money, not banks or business interests.   

JR

 
John Roberts
http://circularscience.com
Tune it, or don't play it...

Ptownkid

Re: Bank of America using SWAT teams on customers
« Reply #4 on: October 19, 2011, 11:09:07 PM »
If you read the comments, you'll find that this event took place in August...

Someone has dug it up to try and tie it in to recent protests.

Re: Bank of America using SWAT teams on customers
« Reply #5 on: October 20, 2011, 12:29:51 AM »
August, Sept, or for sensationalism effect or no - police there because of riot threats? Intimidation? still not clear.


AMZ-FX

Re: Bank of America using SWAT teams on customers
« Reply #6 on: October 20, 2011, 08:00:19 AM »
D-F restricted what banks can charge merchants on debit card transactions, so banks had to raise their debit card feed to customers to pay for the program. If congress restricts that, I can't imagine banks offering a service at a loss.. only he government can perpetually lose money and get away with it (well it looks like greece isn't getting away with it any more).


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JohnRoberts

Re: Bank of America using SWAT teams on customers
« Reply #7 on: October 20, 2011, 10:13:09 AM »
Banks are businesses, so trying to make a profit is what they do. Thanks to the housing bubble these major banks still have tons of crap paper on their balance sheet, while the US banks are much better capitalized than european banks. Maybe those are the ones the protesters should be warning people to pull out of (not serious- they will get bailed out too but only after 19 countries figure out how to bank as one.).

As I have posted before, marginal reserve banking (being able to lend out the same depositor money multiple times)  is a powerful tool important to fuel economic growth. However leverage is a double edged sword and can cut both ways if abused.

In a perfect world banks should probably be a regulated utility, but banks are too important to leave to the dumb ass politicians to completely regulate (look at Fannie and Freddie), which is why we have a supposedly independent FED, but guess what with the big banks on the low interest rate federal interbank teat, the politicians have their hooks in deep enough to have their way with the banks, thus Dodd-Frank...  While few people realize this, the government is still pumping capital into bank balance sheets every week that goes by, with these low interest rates. An ongoing taxpayer bail out.

We need to stop that too, but if you think 9% unemployment is bad, we may have to go through the withdrawal pains of worse, before we can get better. How many drug addicts stop by taking less smack?

Whatever... this attack on big banks, is just an extension of the class warfare which has been a theme of this administration for a while. he even recently offered support for the WS protesters.

Of course opinions vary.

JR

Note: With interest rates as low as I can remember during my lifetime, bank income on the spread only exists because they are getting near zero cost money, but banks do not make the spreads they used to years ago that subsidized so many free services. Banks have to pay their employees and rent and heat, and..... The money must come from somewhere, so we won't see normalcy in banking until normal interest rates return.
John Roberts
http://circularscience.com
Tune it, or don't play it...


 

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