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Democrats Try to Kill Bank of America Over $5 Fee
Townhall.com ^ | October 5, 2011 | Mike Shedlock

Posted on 10/05/2011 10:12:05 AM PDT by Kaslin

Senator Richard Durbin of Illinois is telling Americans to "Get the heck out of that bank", right on the Senate Floor. His comments are in response to Bank of America hiking fees on debit cards.

Please consider BofA Customers Urged by Lawmakers to Quit Lender Over Debit Fee

Congressional Democrats are pushing customers to quit doing business with Bank of America Corp. and one lawmaker is looking to make it easier for them to do so as the biggest U.S. lender announced plans for new debit-card fees.

U.S. Representative Brad Miller, a North Carolina Democrat, introduced a bill today that would bar banks from imposing fees on people who close accounts, calling the proposal a response to the Charlotte, North Carolina-based firm’s plan to charge some debit customers an additional $5 a month.

“As megabanks flirt with menus of new fees, an increasing number of Americans will want to switch banks,” Miller, a member of the Financial Services Committee, said in a statement. “That is the way things work in a competitive, free market as unrepentant banks are still trying to rake in vulgar profits from their customers.”

Miller’s criticisms echoed those of Senator Richard Durbin, the Illinois Democrat who successfully pushed for legislation restricting the amount banks could collect from retailers for debit transactions. The two lawmakers spoke out after President Barack Obama questioned whether Bank of America has an “inherent right” to charge the new fee, which the company said was aimed at making up revenue lost because of the new limits on so-called interchange.

Bank of America Website Down 4th Day, "Thanks for Your Patience" Says Website

The Register reports 
Bank of America website disrupted for 4th day in a row

Bank of America's website continued to suffer sporadic outages on Monday, marking the fourth day that some customers have been unable to use its online services to check balances and pay bills.

"We're sorry, but some of our pages are temporarily unavailable," a note posted to the homepage for the biggest US bank read. "Thanks for your patience." The advisory, and sporadic outages, have greeted many people trying to use bankofamerica.com since Friday.

Bank of America spokeswoman Tara Burke declined to discuss the underlying cause of the outages except to say it isn't related to hacking, denial-of-service attacks, or other incidents related to security.
By not commenting, Bank of America is making matters worse.

Bank of America (BAC) Flirts With $5



Note the late-August "Buffet is Buying" spike has been taken back and then some. The $5 level is crucial. Many mutual funds cannot hold stocks whose share prices drop below $5.

Exclusive Nonsense

As an example of shoddy reporting please consider 
Exclusive: Buffett not worried by BofA share fall.
Billionaire investor Warren Buffett is not concerned by the sharp drop in Bank of America Corp (BAC) shares in the last couple of days, despite his $5 billion investment in the company last month, he told Reuters on Tuesday.

"We agreed to hold it for at least five years, so what I'm thinking about is where Bank of America will be in five years, and nothing in the last 24 hours or 48 hours has changed my views on that," the Berkshire Hathaway Inc (BRKa.N) chief executive told Reuters on the sidelines of Fortune magazine's Most Powerful Women Summit.

Buffett made his bet on Bank of America's survival in late August (though it closed in early September). The deal gave him preferred shares with a hefty dividend and warrants that represent 6.5 percent of Bank of America stock.
Of course Buffett is not concerned about share price of Bank of America. He owns the debt. His primary concern is the debt is paid back, not the share price. It is extremely sloppy reporting to not point this out.

Addendum:

Reader Blake writes "As a libertarian I am appalled that a senator would directly attack an individual company for pricing decisions made by that company."

Blake is correct in that stance. Senators should not make such statements on the floor of Congress.

However, the decision by Bank of America was piss poor. They misunderstood public reaction, and worse yet were not prepared for the surge in traffic. No one will remember all the other banks who followed suit. Everyone will remember Bank of America was the first to jack rates. Bank of America CEO Brian Moynihan is incompetent.


TOPICS: Business/Economy; Editorial; Government
KEYWORDS: boa; durbin; fees; frank
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1 posted on 10/05/2011 10:12:08 AM PDT by Kaslin
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To: Kaslin

BofA MAde the HORRIBLE mistake of telling the Sheeple WHY they imposed the fee, and named NAMES, which makes them the enemy of our new Obamunist Fascist State.

THEY MUST NOW BE DESTROYED...

Will Dems now demand that CITI be destroyed, too?


2 posted on 10/05/2011 10:18:00 AM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: Kaslin

What did these meatheads expect after “Dodd-Frank” was passed and signed into law?

Penned by two of the biggest knuckleheads in the Congress, what else could have happened?

Putzes.


3 posted on 10/05/2011 10:19:32 AM PDT by RexBeach (There is no such thing as a good tax - Winston Churchill)
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To: Kaslin
I say "let the market work".

Don't like the rules at these banks? Move your money to another institution.

4 posted on 10/05/2011 10:20:02 AM PDT by Night Hides Not (My dream ticket for 2012 is John Galt & Dagny Taggart!)
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BoA takes one for team jackass.


5 posted on 10/05/2011 10:20:47 AM PDT by Gene Eric (Your Hope has been Redistributed. Here's your damn Change!)
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To: tcrlaf

Costco just raised their annual membership $5.00.

I don’t understand why BOA is not yelling at the top of their lungs its the government causing this but -—


6 posted on 10/05/2011 10:23:16 AM PDT by edcoil (The will to win is important, but the will to prepare is vital. -- Joe Paterno)
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To: edcoil
Costco just raised their annual membership $5.00.

Costco is not all that cost effective for my family anymore... our Costco bill has shot up significantly this past year... we haven't gone regularly the last two months...

7 posted on 10/05/2011 10:27:52 AM PDT by latina4dubya ( self-proclaimed tequila snob)
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To: Kaslin
"Democrats Try to Kill Bank of America Over $5 Fee"

So BofA is some Conservative darling? Idiotic.

Oh. And as a BoA customer, it can't go under fast enough for me.

8 posted on 10/05/2011 10:29:05 AM PDT by moehoward
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To: Kaslin
The Demoncrat Party is now actively inciting anarchism.

Terrorists, Bill Ayers and Bernadette Dohrn will endorse this action.


9 posted on 10/05/2011 10:29:15 AM PDT by Uri’el-2012 (Psalm 119:174 I long for Your salvation, YHvH, Your law is my delight.)
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To: latina4dubya
"Costco is not all that cost effective for my family anymore... "

I've noticed that too. It's made our local stores a better alternative.

10 posted on 10/05/2011 10:33:45 AM PDT by moehoward
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To: moehoward
Oh. And as a BoA customer, it can't go under fast enough for me.

i was confusing FR with Facebook for a minute, and i wanted to hit the "like" button on your comment!

11 posted on 10/05/2011 10:35:05 AM PDT by latina4dubya ( self-proclaimed tequila snob)
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To: Kaslin; sickoflibs; stephenjohnbanker
now how is ole george soros gonna get his billions back outta boA now...???

its gettin close to 'time' when these players start undercuttin each other...

12 posted on 10/05/2011 10:39:34 AM PDT by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: RexBeach

BTTT.

Mega dittos

AMEN

Agreed


13 posted on 10/05/2011 10:42:21 AM PDT by marty60
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To: RexBeach

create the crisis then ride to the rescue to punish the evildoers.

typical Dimrat SOP


14 posted on 10/05/2011 10:43:07 AM PDT by WOBBLY BOB (See ya later, debt inflator ! Gone in 4 (2012))
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To: RexBeach

Bingo. I work in the field and I’m telling ya, “Dodd-Frank” slipped through after all the Obamacare hype. Not saying Obamacare isn’t a complete disaster. Just saying that the public has no idea what is in store for them because of “Dodd-Frank”. If you take away the lenders ability to collect on the debt for profit. Why would anyone lend anyone anything?


15 posted on 10/05/2011 10:44:06 AM PDT by The Toll
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To: Night Hides Not

All banks are subject to the government rules.


16 posted on 10/05/2011 10:53:51 AM PDT by reg45 (I'm not angry that Lincoln freed the slaves. I'm angry that Franklin Roosevelt bought them back.)
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To: reg45

“All banks are subject to the government rules.”

All everything is subject to government rules, except insofar as government hasn’t gotten around to it yet.


17 posted on 10/05/2011 11:02:01 AM PDT by Tublecane
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To: moehoward
"as a BoA customer, it can't go under fast enough for me."

Of course anyone who borrowed money from them should pay it back as they promised, right? Otherwise they'd be deadbeats and crooks and share a large part of the of the economic chaos we're all suffering through. In the end (beginning and middle too) they are liars and scum.


18 posted on 10/05/2011 11:03:02 AM PDT by I see my hands (Keep your sunny side up!)
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To: I see my hands

What does BoA charging 5 dollars for a customer to spend his own money have to do with another stiffing BoA on a debt?

Nothing.


19 posted on 10/05/2011 11:11:43 AM PDT by moehoward
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To: Kaslin

Bank of America greased Dirty Turban Durbin’s palm in return for writing in the provision of the Frank/Dodd bill that allowed BoA to charge $5/month for debit card usage. Now Durbin stabs BoA in the back by telling their customers to leave if they don’t like it. I have to wonder what the top brass at BoA think being betrayed like that?


20 posted on 10/05/2011 11:18:24 AM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: moehoward
Yeah but anyone who borrowed money from them, mortgage loans, CC debt, e.g. should pay it back as they promised. Otherwise they'd be thieving scum too. And should be as despised than the BOA banksters, right?

21 posted on 10/05/2011 11:22:00 AM PDT by I see my hands (Keep your sunny side up!)
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To: tcrlaf
BofA MAde the HORRIBLE mistake of telling the Sheeple WHY they imposed the fee, and named NAMES

Got that right. You don't embarrass a member of the Imperial Senate like Dick Durbin as he is taking his attaboys for standing up for the little people and not pay a price for it.

The message is being delivered loud and clear to the other banks.
22 posted on 10/05/2011 11:22:22 AM PDT by Buckeye McFrog
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To: Kaslin

Dimocraps never think through the laws they pass for the unintended consequences....This is now known as the Dubin fee as far as I’m concerned.


23 posted on 10/05/2011 11:27:30 AM PDT by chris_bdba
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To: Jack Hydrazine

I have to wonder what the top brass at BoA think being betrayed like that?


I can tell ya what they should be thinking.

The public is angry at banks. They want a perp walk. This country has had a populist backlash against bankers on a fairly regular cyclical basis throughout it’s history. Conditions are about ideal for it to happen again, and Durbin’s party is desperate for a campaign issue.

But I don’t think they are that smart.


24 posted on 10/05/2011 11:27:42 AM PDT by Buckeye McFrog
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To: I see my hands

If one was successful in completing the loan process, with the intent to defraud, then yes, “they’d be thieving scum too”.

Again. Nothing to do with a $5 fee to spend one’s own money.


25 posted on 10/05/2011 11:29:04 AM PDT by moehoward
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To: Kaslin

1) BOA bought Countrywide from Dodd’s buddy.

2) BOA will probably go bankrupt so no contributions to democrats will be forthcoming so they attack BOA.

3) I hate BOA, too, but for the right reasons.


26 posted on 10/05/2011 11:35:59 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: Kaslin
Does the U. S. Government still have an equity position in BAC? In 2008, the government assisted BAC with liquidity in exchange for stock, as I recall.

If so, then Dick Durbin's ill-considered vendetta against BAC is also a broadside against the interests of the taxpayers he purports to represent, since they ponied up the money to keep BAC out of receivership three years ago.
27 posted on 10/05/2011 11:36:43 AM PDT by Milton Miteybad (I am Jim Thompson. {Really.})
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To: Jack Hydrazine
Bank of America greased Dirty Turban Durbin’s palm in return for writing in the provision of the Frank/Dodd bill that allowed BoA to charge $5/month for debit card usage.

Wait... Frank/Dodd ALLOWED the $5 fee?? First I heard of that. My understanding is that F/D capped the interchange fee, and BoA imposed the debit card fee to make up for the lost revenue. In other words, there was nothing stopping them from imposing the fee before; they just never had a reason to do so until now.

28 posted on 10/05/2011 12:01:00 PM PDT by Constitutionalist Conservative (Palin or Perry, whoever is ahead in the delegate count on primary day)
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To: Kaslin
That is the way things work in a competitive, free market

...Miller said, as he filed a bill designed to further manipulate the market.

29 posted on 10/05/2011 12:03:15 PM PDT by Constitutionalist Conservative (Palin or Perry, whoever is ahead in the delegate count on primary day)
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To: Kaslin; windcliff
Relax everyone. The retailers lowered their prices 1 1/2% because they benefit from the lower debit card swipe fees. WHAT!!!!!, you mean they didn't do that?

I only deal with credit unions. Haven't had a "bank" account in over 30 years.

BofA should have named names. Whenever you hear, "We're from the government and we're here to help" just know it is going to cost you bigtime.

30 posted on 10/05/2011 12:05:23 PM PDT by I Drive Too Fast
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To: moehoward
Nothing to do with a $5 fee to spend one’s own money.

It's not a fee to spend one’s own money. It's a fee to use their service to do so.

31 posted on 10/05/2011 12:12:29 PM PDT by Darth Reardon (No offense to drunken sailors)
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To: Kaslin

Boortz did an excellent monologue on this during his show yesterday ...


32 posted on 10/05/2011 12:13:24 PM PDT by Scythian
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To: Kaslin
as unrepentant banks are still trying to rake in vulgar profits from their customers

Are banks limited regarding how much they can lend out? IOW, can they lend based on non-deposit assets? If so, "vulgar profits" = your mortgage.

33 posted on 10/05/2011 12:14:03 PM PDT by Constitutionalist Conservative (Palin or Perry, whoever is ahead in the delegate count on primary day)
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To: moehoward
Intent? That's irrelevant. One isn't lent money on their intention to repay. One is lent money on their signature, their sacred word. And when they don't pay back a mortgage loan, for example, they may not have intended to lower the property values of the homes in their neighborhood but that's just what they did. (And by lots more than $5/mo!!)

And no, you're just confused. The $5/mo isn't to use your own money it's for the convenience of using a debit card. Used to be the merchant paid (and had an incentive to pass along as little of the fee as possible in order to be competitive with other businesses) but federal regulations required the banks to shift the burden directly to the retail consumer. Convenience isn't free. Somebody has to pay, otherwise how would a profit be made? How would employees be paid? Or stockholders?

Nah, the $5 isn't to use your money, it's a fee for service rendered.

It's the loser, thief, deadbeats who thought they could take advantage (in the case of mortgage loans, for example) of a government rigged (CRA) system.


34 posted on 10/05/2011 12:15:00 PM PDT by I see my hands (Keep your sunny side up!)
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To: chris_bdba

“Dimocraps never think through the laws they pass for the unintended consequences....”

As we keep sliding into marxism, I am beginning to wonder if it is really unintended.


35 posted on 10/05/2011 1:02:19 PM PDT by CSM (Keeper of the "Dave Ramsey Fan" ping list. FReepmail me if you want your beeber stuned.)
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To: Kaslin

It’s all my fault. Ever since I bought it, five different companies have owned and/or serviced my mortgage, and four have gone broke. If Bank of America goes down the tubes, that’ll make five. I’m thinking about painting their corporate logos on the side of my house, like kills on a fighter plane.


36 posted on 10/05/2011 1:25:33 PM PDT by Mountain Troll (My investment plan - Canned food and shotguns)
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To: Constitutionalist Conservative

Durbin wrote it in.


37 posted on 10/05/2011 1:59:08 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Jack Hydrazine
Durbin wrote it in.

So, Durbin wrote in BOTH the interchange cap AND the $5 debit card fee?

I thought people were calling it the "Durbin Fee" simply because that was how the banks reacted to his interchange cap.

38 posted on 10/05/2011 2:03:21 PM PDT by Constitutionalist Conservative (Palin or Perry, whoever is ahead in the delegate count on primary day)
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To: Constitutionalist Conservative

Nope. He wrote it into the bill. That’s why I find it so funny that he would do this for BoA and proceed to stab them in the back by telling their customers they can go eff themselves and go to other credit unions or banks if they didn’t like the fee. I’m sure the top BoA people are not happy.

With this fee and their attitude toward their customers in general and the website not working well I expect to see a percentage flee.


39 posted on 10/05/2011 2:15:22 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: I see my hands
"One is lent money on their signature, their sacred word."

So signing the contract binds the borrower to some higher conditions not included in the contract? I fail to see how either parties "sacred word" is diminished by exercising contract provisos both agreed to.

And, again. That has nothing to do with BoA debit card fee. I supposed the bottom line is, all they're doing is upping the cost of a BoA checking account. If that makes them too expensive to do business with, people will walk away. I did years ago.

40 posted on 10/05/2011 2:17:53 PM PDT by moehoward
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Comment #41 Removed by Moderator




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42 posted on 10/05/2011 2:37:41 PM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list)
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To: I Drive Too Fast

I’m still with BOA :(


43 posted on 10/05/2011 2:40:10 PM PDT by windcliff
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To: Kaslin

I don’t understand all of the focus on BoA. My bank sent me a similar notice a month ago or so. My formerly free checking would charge a monthly fee if we didn’t keep a minimum balance or have a certain amount of direct deposited funds. We do, so no problem. In addition, they would add a monthly charge if we used our debit cards for any non-ATM transaction. We don’t, so no problem. However, their changes haven’t made front page news.


44 posted on 10/05/2011 2:43:31 PM PDT by tnlibertarian (Things are so bad now, Kenyans are saying Obama was born in the USA.)
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To: moehoward
People who pay their obligations as promised and on time don't have to debate "provisos" lol. And in most cases those who do debate provisos have had courts rule against their bogus interpretations and they lost their homes. Sadly too few learn lessons about responsibility in the process and spend their energy trying to convince themselves that their convoluted excuses are valid.

The $5 fee for debit card service is no different than the $12K fee jet ski dealers charge for their product. But you're right; we all make decisions.


45 posted on 10/05/2011 2:52:29 PM PDT by I see my hands (Keep your sunny side up!)
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To: Kaslin

Where’s Andrew Jackson when we need him?


46 posted on 10/05/2011 2:55:48 PM PDT by MinorityRepublican
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To: RVN Airplane Driver

I’m with you on this. I love their bill pay! I can’t believe people can’t see what is happening. Also I wish people would stop harping about the web site. I got a letter in the mail saying they were updating and making improvements to the site. Come on, anyone knows that a web site can slow down or have some of it’s features have glitches during a revamp.


47 posted on 10/05/2011 3:14:21 PM PDT by Vicki (Washington State where anyone can vote .... illegals, non-residents, dead people, dogs, felons)
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To: moehoward
And good riddance to them - let's hope they really do perish. We've enough fat-assed do-nothings, ranging from bankers to welfare recipients, in America who feed like leeches off the lifeblood of those who actually produce a real product.

Let 'em die, and let any stupid enough to work for such an institution get a job doing something productive instead.

48 posted on 10/05/2011 5:25:42 PM PDT by Lexinom
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To: Kaslin

The same fee that Durbin himself was involved in creating? =.=


49 posted on 10/05/2011 8:43:37 PM PDT by cranked
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To: Jack Hydrazine
I have to wonder what the top brass at BoA think being betrayed like that?

I'm gonna have a cry in my Stella. Bank of America we hardly knew ya. Time to set Zero Hedge as my second homepage.

50 posted on 10/05/2011 8:54:31 PM PDT by Stentor ("All cults of personality start out as high drama and end up as low comedy.")
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