Posted on 10/06/2011 9:22:39 AM PDT by tobyhill
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 (BAC, Fortune 500) 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 (C, Fortune 500). 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.
(Excerpt) Read more at money.cnn.com ...
I have an account at B of A. I consider the use of my debit card and online bill pay a service. They have made capital investment and pay labor to provide the convenience to me; I don’t have to wait in line to cash a check, I don’t have to write checks and pay postage to pay bills, etc.
He will rue the day he said that.
It is becoming crystal clear. Democrat strategery in 2012 will be to run against the banks. They will run on promises of heavy regulation of fees and interest, controls on speculation, and will promise banker perp walks.
And heaven help the banker who tries to tell the Sheeple that things are getting worse and it’s government’s fault.
B of A will back down from this or suffer the consequences.
Their decision is as ill-timed as anything could possibly be.
What is the cause/effect connection between the two ? If BA doesn't make a profit, somehow all these struggling Americans will do better ???
No, the opposite is true: if BA doesn't make a profit, then they lay off 30,000. If it gets too bad, they go under, and then even more Americans are struggling.
That’s well and good. They’re not ‘making’ a profit off you; they’re ‘earning’ a profit from you by providing a service for a fee that you’re willing to pay. Nothing wrong with that. They don’t have a ‘right’ to that profit, they do have the ‘right’ to solicit your business and enter an agreement with you to provide services at rates you’re willing to pay. They earn their profit based on that agreement to which you concur and assent. There’s no ‘right’ or entitlement they have to your money, until you voluntarily relinquish it based on your service agreement with them.
That is not the point, of course you know that. The point once again, just for you, is American taxpayers were force to bail out these banksters, corrupt Wall Street insiders and fatcorps. All while these same entities seize the assets and properties of those who were forced to bail them out.
It's like you going broke due to bad decisions, but instead you rob me at gun point to save your a$$.
Apparently, you think this is all perfectly legitimate and capitalism at it's best.
I only wish he would have added “... and just who is paying for all these unemployed leeches on society to foul our city?”
This fee was being discussed long before that legislation was passed. They just used it as an excuse now. You give BoA too much credit.
The point of sale cost/fee before Dodd/Frank was about 20 cents/transaction.
So the $5/mo. only offsets about 25 transactions.
If you don’t like it, don’t use it.
I live fine with out it.
Maybe BoA execs refused to pay Durbin's "tribute."
Mark
Some of Dick Turban’s ex-staff members are now lobbyists for companies that apparently benefit from the shennanigans.....
Don't like the way Government treats you? You can write a letter and beg - because you're not a customer to them and they don't care.... and there's no other government to go to...
Democrat 2012 Convention site - Charlotte, NC.
How much money do you suppose the business (BofA) and the City (Charlotte) and the State (North Carolina) will funnel into the Democrat Party?
My guess is, lots and lots and lots!
Obama said that they cannot raise the fee to the merchant or collect enough to pay for the service anymore. So guess what? They’ve got to get paid for this service somewhere, and who else are they going to get it from?
While Obama certainly supports it, it was Dick Durbin's amendment to the Dodd/Frank "screw-over-the-bank-customer-bill."
Mark
Good old Turban Durbin.
The $5.00 fee was being discussed long before the Dodd/Frank bill was passed. Stop making excuses for BoA.
I am not defending Dodd/Frank either. It sucks also, but BoA was planning this fee and others for some time. It was stupid of them then and now; and has been a public relations diaster that may actually topple the bank in the near term (unless we bail the banksters out again).
“Things are working out as we had planned Mr President. Enough fools in this country fault the banks to help put us over the top next November!”
Stop proclaiming your business management ignorance.
BofA has a transaction expense and there is no business model anywhere suggesting it should come from profits rather than the benefitting consumer!
I’m sure when the concept of debit cards came up, the business model suggested getting the consumer hooked on using the card and later, introducing fees.
The only ignorant one is you as you seem to have a reading problem. These fees would have been introduced ANYWAY, even if this Dodd/Frank had not passed.
It has been planned for some time. BoA sucks. I have done business with them in the past and they were the worst bank I ever had to do business with. As far as fees go, they are now paying the price for their stupidity in trying to push this increase now.
Several other banks are lining up to introduce this fee also, and it will almost surely kill off a large part of the debit card industry. I know I will go back to writing checks or paying cash before I pay.
I am at a credit union and they have not tried this stupidity yet, but if they do, I’ll send them back the card. I am not the only one who feels this way and watch as the BoA stock continues its downway trend.
They have the right to use their profits to put internationalist fascists in power, too. Now the limo-socialists get to experience what they paid for and advocated.
Maybe they will re-discover the ideals of that American constitution they tossed in the trash. It is the only thing that stands between Marxists and everyone’s private property.
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