Page 1 of 4 1234 LastLast
Results 1 to 15 of 57

Thread: Bank of America's CEO defends $5 debit-card fees: We Have a 'Right to Make a Profit'

  1. #1
    fgg
    fgg is offline
    Elite Member fgg's Avatar
    Join Date
    Apr 2008
    Posts
    29,635

    Default Bank of America's CEO defends $5 debit-card fees: We Have a 'Right to Make a Profit'

    BofA Chief: We Have a 'Right to Make a Profit'

    WASHINGTON (CNNMoney) Bank of America's CEO defended his bank's new $5 fee on debit cards on Wednesday, saying that customers and shareholders understand the bank has a "right to make a profit."

    Bank of America (NYSE: BAC - News) CEO Brian Moynihan defended the move, which the bank announced last week in response to new caps on debit card swipe fees that the banks charge retailers.

    Bank of America's announcement of a new debit card fee was followed today by an announcement of new checking account fees by Citibank (NYSE: C - News). These new bank fees have fueled a populist backlash that has coincided with a series of protests against Wall Street banks around the nation.

    Moynihan stopped short of criticizing President Obama who earlier this week said to ABC that banks don't have an "inherent right" to a "certain amount of profit."

    But BofA's chief did say banks have an inherent right to make a profit in an interview Wednesday with CNBC's Larry Kudlow at the Washington Ideas Forum, sponsored by the Newseum, the Aspen Institute and the Atlantic magazine.

    "I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders," Moynihan said.

    Moynihan said that the bank will talk to its customers, teammates and shareholders and "they'll understand what we're doing understand we have a right to make a profit."

    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 said the new charge was necessary because the "ability to be profitable" in retail banking has changed. He added that Wall Street reforms in the so-called Dodd-Frank Act will cost his bank "billions."

    When Kudlow asked Moynihan if he felt the bank was under attack, Moynihan said "no."

    "We have the best bank in the world, we do a great job for our customers," he added.

    Later, Moynihan was asked about an entirely different issue, whether he supported a proposed tax on millionaires that Senate Democrats proposed today.

    He said he'd echo what he hears from his millionaire customers: "Yes, but what for?"

    "If the belief is that it puts our fiscal house in order, then they support that," Moynihan said.

    Bank-of-America-Moynihan-CNNMoney: Personal Finance News from Yahoo! Finance
    can't post pics because my computer's broken and i'm stupid

  2. #2
    Hit By Ban Bus! rockchick's Avatar
    Join Date
    Oct 2005
    Location
    midwest USA
    Posts
    4,427

    Default

    Fuck Bank of America. I hate banks. I'm surprised they don't charge you to park in the parking lot.

  3. #3
    Elite Member CornFlakegrl's Avatar
    Join Date
    Apr 2008
    Location
    Hanging with the raisin girls
    Posts
    12,169

    Default

    They reported 2B in profits the first quarter of this year. That's down from 3B but really BOA, you're gonna cry poor?

    How about loaning money again? The banks are so tight fisted since the crash they don't loan, the economy crawls and they strip their own profits off the interest they could charge.

  4. #4
    Elite Member Novice's Avatar
    Join Date
    Nov 2006
    Location
    Beyond Caring, then hang a left.
    Posts
    41,593

    Default

    And we have the right to move all our bank accounts to some bank that doesn't charge this.
    Free Charmed.

  5. #5
    fgg
    fgg is offline
    Elite Member fgg's Avatar
    Join Date
    Apr 2008
    Posts
    29,635

    Default

    ^it's a big undertaking to switch banks.
    can't post pics because my computer's broken and i'm stupid

  6. #6
    Elite Member Novice's Avatar
    Join Date
    Nov 2006
    Location
    Beyond Caring, then hang a left.
    Posts
    41,593

    Default

    The same thing happened in the UK and the particular bank lost hundreds of thousands of customers.

    All you have to do is set up a bank account in a new bank & close the old one. Volia.
    Automatic payments can be reset up, etc, etc, etc. In the UK the new bank even does that for you.
    It just depend how motivated you are.
    Free Charmed.

  7. #7
    Elite Member KrisNine's Avatar
    Join Date
    Jul 2006
    Location
    Sleepy night night land
    Posts
    22,369

    Default

    I read that Citi is planning on charging all customers, with less than $6000 in their accounts, $15 per month.

  8. #8
    Elite Member CornFlakegrl's Avatar
    Join Date
    Apr 2008
    Location
    Hanging with the raisin girls
    Posts
    12,169

    Default

    People's is still free. For now. We have a local bank here that I'll switch to if People's starts reaching in my pocket.

  9. #9
    Elite Member C_is_for_Cookie's Avatar
    Join Date
    Aug 2009
    Posts
    3,490

    Default

    Quote Originally Posted by KrisNine View Post
    I read that Citi is planning on charging all customers, with less than $6000 in their accounts, $15 per month.
    Yeah, let's punish the poor people once again. One of our friends was with US Bank and they did the same thing. He left them.
    avatar made by green_queen@LJ

  10. #10
    Elite Member msdeb's Avatar
    Join Date
    Feb 2006
    Location
    in a van down by the river
    Posts
    39,431

    Default

    we have Chase, and so far they are free for checking. Its a pain in the ass to switch banks since we have direct deposit, but if they charge me, i will take the money and find a free place.
    Basic rule of Gossip Rocks: Don't be a dick.Tati
    Lighten Up Francis WCG

  11. #11
    Elite Member darksithbunny's Avatar
    Join Date
    Oct 2005
    Posts
    14,129

    Default

    Quote Originally Posted by Novice View Post
    And we have the right to move all our bank accounts to some bank that doesn't charge this.
    Yep. I am so glad I just moved all my accounts out of there months ago. They are a bunch of jackasses.

  12. #12
    Elite Member OrangeSlice's Avatar
    Join Date
    Dec 2007
    Location
    Studying with Master Grumpy Cat
    Posts
    9,397

    Default

    After being screwed over by Wachovia/Wells Fargo repeatedly, I managed to switch everything to the local credit union. Now, there is no other way to go for me. Minimal fees and they're not looking to make a massive profit off of their customers. I'd encourage anybody that can to switch to their local or state credit union.
    "Schadenfreude, hard to spell, easy to feel." ~VenusinFauxFurs

    "Scoffing is one of my main hobbies!" ~Trixie

  13. #13
    Gold Member laynes's Avatar
    Join Date
    Oct 2007
    Location
    What's round on the ends and high in the middle?
    Posts
    1,360

    Default

    Certainly they have a right to make a profit as all businesses do. And as consumers we can voice our displeasure by going elsewhere.

    My bank hasn't done this, but I personally do not think it's that big of a deal. One less Starbucks for me a month.

    I think more banks will join this trend since the Durbin Amendment passed. And what you won't see are Merchants lowering prices even though they are now saving a TON of money.



  14. #14
    Elite Member MontanaMama's Avatar
    Join Date
    Jan 2008
    Location
    Evading P6 & P7
    Posts
    13,275

    Default

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

    And that right there, ladies and gents, is what is wrong with the US and why we are on the situation we're in...as soon as everything began to rotate around "return for shareholders" the whole economic system started sliding off to the abyss.
    If i hear one more personal attack, i will type while drunk, then you can cry! - Bugdoll
    (716): I'd call her a cunt, but she doesn't seem to have the depth or warmth
    Quote Originally Posted by shedevilang View Post
    (Replying to MontanaMama) This is some of the smartest shit I ever read

  15. #15
    Elite Member
    Join Date
    Oct 2008
    Posts
    3,771

    Default

    Well, one of the things I find interesting is that growing up I was taught to think of banks as making their money purely through the interest they earn on deposits, and that the banks and customers were kind of aligned in their goals. With my own kids, I noticed that they tended to think of banks as kind of 'official' organizations whose job it was to hold their money, and who had their best interests at heart, and not as profit centers. I have tried to make sure they understand that banks will try to earn money off you every way they can and there is very little regulation to stop them.

    Thanks god for my credit union.

Page 1 of 4 1234 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 0
    Last Post: October 27th, 2010, 06:11 PM
  2. U.S. banks to make $38 billion from overdraft fees: report
    By celeb_2006 in forum U.S. Politics and Issues
    Replies: 3
    Last Post: August 10th, 2009, 03:49 PM
  3. Using your debit card to pay for gas?
    By msdeb in forum News
    Replies: 6
    Last Post: June 27th, 2008, 02:43 PM
  4. Bank issues credit card to cat
    By celeb_2006 in forum News
    Replies: 7
    Last Post: January 18th, 2007, 01:30 PM
  5. FEMA Katrina Debit Card purchases report
    By UndercoverGator in forum U.S. Politics and Issues
    Replies: 0
    Last Post: February 15th, 2006, 04:08 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •