Bank of America CEO: We have a 'right to make a profit'

[ProSense]

Bank of America CEO: We have a 'right to make a profit'

by Kaili Joy Gray

You know how Bank of America is going to start charging you $5 a month to use your own money? Turns out it's not class warfare or blatant greed. Nope. It's just the bank exercising its rights:

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." <...>

(Brian) 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." <...>

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." <...>

Right. Because if Bank of America doesn't start charging its customers $5 a month to use their own money, the struggling bank will be crushed by regulations and unable to be profitable—which, of course, is its right. Life, liberty, the pursuit of happiness ... and the right to turn a profit. Makes perfect sense when you put it that way. Thanks, Mr. Moynihan, for explaining it in little words we can all understand.

Oh wait. What's that? Bank of America made how much money last year?

On its face, the second quarter appeared to be a healthy one for the Charlotte, N.C.-based lender. It earned $3.1 billion, or 27 cents a share, besting analysts' forecasts for a profit of $2.3 billion, or 22 cents a share, according to Thomson Reuters.

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[LiberalEsto]

1. And we have the right to vote with our feet

to the nearest credit union.

[Sherman A1]

2. Precisely

No one is arguing that BOA shouldn't make money (at least of which I am aware).

BOA made a business decision to implement a fee and their customers seems to be making a business decision to take their business down the street.

Seems reasonable to me......

[gateley]

3. I know! I heard he said people "would get used to it" -- maybe

SOME will (shareholders?) but plenty of others won't have to worry about it. They'll vamoose!

[Vincardog]

13. \If anyone reads this and still has a BOA account SHUT IT and TRANSFER it to a Credit Union NOW

BOA is going DOWN

[frazzled]

20. Credit unions are not easily available in all areas

I was researching them in my city, and frankly--aside from all the ones that are specifically for actors, firemen, city workers, etc.--I found only one or two that are anywhere near where I live, and I'd never heard of them before. It's not always so easy.

That said, I've been eager for several years to move our BoA account. Not that we ever CHOSE to bank there. When we moved to Boston we put our money in the local Bank Boston, which got sold to Fleet, which got sold to Bank of America, and there we stayed when we moved to Chicago, just because there was no interruption in service.

It's frankly, not going to be easy to find a place to go. We'll have to make sure about work deposits as well as wire transfers from international payments for my shitty little business.

[Vincardog]

21. If you can't find a Credit Union look for a LOCAL BANK.

[LiberalEsto]

34. Check this site

if you haven't already

Credit Union National Association

http://cuna.org/

[catbyte]

4. Only if you EARN it thru good customer service. Big Profits is not a right

Especially obscene profits.

[Avalux]

5. And we have the right to put you out of business. n/t

[elleng]

6. We know that, idjot; We have a right to ensure competition.

Bye Bye!

[truedelphi]

10. + 1.

[louis-t]

7. Greeters at BoA are very nice. They seem so concerned.

But they can only do as much as their handlers let them. Good customer service means more than having a greeter smile at you and ask if everything is ok. It seems really forced.

By the way, isn't this in the wrong forum?

[rhett o rick]

12. The only reason I go into Skank of America is to leave pamphlets telling customers

to move their money.

[ieoeja]

16. Shortly after Chase bought my bank, I was hit with a boatload of fees.

The local bank manager was able to refund me and was really sheepish about it. I'm guessing he had a lot of irate encounters (though not me; I don't start off by faulting workers for the policies of their employers).

[otohara]

19. If BOA Could Figure Out A Way to Outsource

greeters and tellers in the USA,, they would.

[DisgustipatedinCA]

8. You have a right to try, Mr. Moynihan, and the right to fail in so trying

Throw rotten eggs at me--I deserve it. I'm still a BofA customer (but I won't be for long).

I used to work on the BofA firewall team, several years back. I got an account with them at that time. Then they fired all my friends (takeover, backoffice integration, then get rid of everyone possible). I've kept the account over the years, because it was easy, because it was convenient, because I liked their online bill pay options--mostly because of inertia I guess.

This latest scam is, in my case, the straw that broke the camel's back. I've found a credit union with a wide-open charter (by virtue of residing in Sonoma County, I can join). The credit union appears to have a good online banking and bill pay package. I just need to go sign up and move some money. Pending.

I hope there are many thousands of others just like me who knew BofA was no good, but who have just been too lazy/busy/preoccupied to move their money until now.

[racaulk]

36. That's exactly the position I have been in.

I have been with BoA for almost nine years. Their online bill pay system is very convenient (and easy) and there are ATMs everywhere in my city and in most of the places where I travel. It's also a pain in the neck to update your direct deposits and automatic drafts. I have been in the same boat as you have been -- just staying put because of inertia and because, up until now, doing so hasn't cost me anything.

I agree, this is the proverbial straw for me as well. I'm researching local credit unions now and will be free of BoA in the coming weeks.

:fistbump:

[Hutzpa]

9. He is in a hole and he is digging to stay in.

that is mark of arrogance.

[rhett o rick]

11. And exactly which Amendment is that? nm

[formercia]

14. When BofA goes under

make sure they don't take your Money with them.

[Yavin4]

15. It's Like He's Mockingly Sticking His Head into the Guillotine

and daring us.

[jwirr]

17. Until you managed to get Glass-Steagel overturned you did not

have a right to gamble with other peoples money unless they wanted you to.

[Dawson Leery]

18. Let them FAIL!

[lunatica]

22. That's what they think. It's deeply entrenched in their reptile brain stem.

[and-justice-for-all]

23. There should be a run on BOA...nt

[MANative]

24. Moynihan is right. They absolutely have a right to...

make a profit. Just as I have a right not to contribute to it in any way, shape, or form. I've been a BoA customer for at least twenty years, but was always reluctant to leave because of the hassle of moving so many automated debits and credits. With this move, I've had it. I've already opened a new account, and have now made arrangements to move all my direct deposits and payments over to the new account. It'll take a couple of weeks for everything to process, but my exit from BoA is well underway. I'm just exercising my rights, dontcha know. Chew on that, Moynihan.

[annabanana]

25. NO! you have the PRIVILEDGE of BEING ALLOWED TO TRY to make a profit.

You have no right to a profit.

Corporations exist because we allow them, by statute, to exist.

[Worship Money]

26. You have the right to fuck off

Can't people see, THIS is why these financial institutions are a problem.

They are fixated on an absolute maximization of profit, and will cut costs/attempt to create revenue by whatever means they feel they can get away with.

[Blue_Tires]

29. +1

welcome to the site!

[Generic Brad]

27. If corporations are people....

...and if corporations have a right to make a profit - then people have a right to make a profit. That should make his head spin.

[ck4829]

28. Imagine if an advocate for the poor said they had the right to make money

"SOCIALISM!"

[Cigar11]

30. F-Them

I hope they remember they don’t have a Right to Tax Payer Bail-Outs

[Freddie Stubbs]

31. They have a right to TRY to make money

[flamingdem]

32. I was hoping this was an article from "The Onion" but no nt

[ezmerelda39]

33. Mr. Moynihan's bonus

I want to know how much of every $60 yearly fee you will be charging us to use our own money goes directly into Mr. Moynihan' pocket. Ten cents? Fifty cents? A dollar? Mr. Moynihan, would you be so kind as to explain this to us so that we understand completely this decision. Perhaps you are like most of the rest of us and you have found yourself short for whatever reason and need to make sure there are no shortages of funds available to you in your future. Simply charging more to increase our bottom line is not an option. We would all like to make a few suggestions as how 'to tighten your belt a notch or two' during this 'pinch' like most of the rest of us have had to do. To begin with you (as well as all of your stock holders who are suffering the same as you)might consider brown bagging it for lunch. P.S. If I was one of the thousands of employees you will be laying off in the coming months I would be extremely upset over every single penny you add to your stockholders profits.

[racaulk]

35. I can't think of a single business or industry that has a "right" to make a profit.

The fact that Moynihan thinks his business should make profits automatically, as opposed to earning them, illustrates the problem perfectly.

I have been a loyal Bank of America customer since 2003. I will no longer be one by the end of the year.

K&R!