Bank of America to charge $5 monthly fee for debit card purchases

Discussion in 'Business & Economics' started by KilljoyKlown, Sep 29, 2011.

  1. The Esotericist Getting the message to Garcia Valued Senior Member

    Messages:
    2,119
    Wow, nice reply Arthur. I tried to find a write up, but near as I could tell, that journalist hadn't actually written a piece. If he had, I couldn't find the piece.

    Well, I guess it is all a matter of perspective and point of view. We shall see. It appears the whole system is a ponzi scheme. If not, I guess a lot of people are wrong in reading the signs and analyzing things wrong.

    Here's a Bloomberg piece. If this breaks the way I believe it will, the nation will be in a shit ton of trouble. I'm sure with your pollyanish view, the nation won't be on the hook for that trillion, right?

    BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit
    By Bob Ivry, Hugh Son and Christine Harper - Oct 18, 2011 1:56 PM ET

    Please Register or Log in to view the hidden image!


    Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms. Photographer: Scott Eells/Bloomberg
     
  2. Google AdSense Guest Advertisement



    to hide all adverts.
  3. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    Well I don't believe BofA is a Ponzi scheme.
    Not sure why you do.

    There's nothing in that article that says that BofA is a Ponzi scheme.
    Indeed they just posted pretty good profits for the quarter, not as good as Apple, but solid.

    No, why would they?

    The FDIC guarantees deposits, but I don't think you understand what that means exactly.

    The key point is that Failing banks the size of BofA still have substantial assets.

    Consider the Failure of Wachovia as instructional:

    http://www.fdic.gov/news/news/speeches/chairman/spsep0110.html

    So notice, even though Wachovia at ~$600 Billion was our 3rd largest retail brokerage firm based on assets, it's failure was NOT EXPECTED to cost FDIC anything, and that was with the Citicorp take over.

    The eventual Wells takeover was far better deal all around and the Wachovia Shareholders came away with over $15 Billion in Wells stock.

    Arthur
     
  4. Google AdSense Guest Advertisement



    to hide all adverts.
  5. milkweed Valued Senior Member

    Messages:
    1,654
    I just became aware of this new way to get the taxpayers to bail out wall street speculators. I had to search FDIC to find out how (it didnt make sense to me). Yep. Its real.
    http://www.fdic.gov/deposit/deposits/unlimited/index.html
     
  6. Google AdSense Guest Advertisement



    to hide all adverts.
  7. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    Nope, only depositors are covered by FDIC.
     
  8. The Esotericist Getting the message to Garcia Valued Senior Member

    Messages:
    2,119
    Yes, thank you for the instructive history about financial consolidation and rich and corrupt people putting printed money into each others pockets. Your sources and your argumentation make better points and a better case than I could. I can see more of the same coming in the future with trillions involved next time instead of billions, why can't you? However, the result I see is riots in the street instead of protests, why don't you?
     
  9. The Esotericist Getting the message to Garcia Valued Senior Member

    Messages:
    2,119
    Merryl Lynch should have failed. I don't care what the Fed favors, I don't trust the Fed. If there's no money, there's no money. If the Fed had it's way, it would print 200 trillion dollars.

    Please Register or Log in to view the hidden image!



    "The bank doesn’t believe regulatory approval is needed"
    I wonder why the brass at BofA would say that. . .

    Please Register or Log in to view the hidden image!


    Could it be they are crooks?
     
  10. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    Are you kidding?
    Wachovia was worth far more to the shareholders before they failed and got bought by Wells.
    The $15 Billion simply means the shareholders (mainly wealthy) didn't lose everything.


    Because having been to some nice restauraunts and to the crowded mall and then attending a fairly packed concert this weekend, all the while many thousands of residents turned out to celebrate a large annual gathering on the river it was plain to see that the majority of the people are not only doing ok but quite happy.

    Which is not hard to understand considering that of the 154 millon people who want to work 140 million of them have jobs, and by far the largest percent of the unemployed (25%) are teenagers who for the most part are living at home and not really suffering.

    But if you think those few hundred OWS protesters, in a city of 8 million is representative of the state of NYC, let alone the country, well I guess I can't convince you that your perception might be a tad off.

    Arthur
     
  11. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    It did fail.
    It was sold to BofA
    BofA took a loan from the Treasury to get through a short bad patch but has paid that back, with interest on the money.
    So what exactly are you bitching about?

    Arthur
     
  12. nietzschefan Thread Killer Valued Senior Member

    Messages:
    7,721
    It;s actually a trillion dollar coin
     
  13. Orleander OH JOY!!!! Valued Senior Member

    Messages:
    25,817
    ...There's even a campaign, dubbed "Bank Transfer Day" that has more than 11,500 people pledging on Facebook to switch financial institutions by Nov. 5. Most say they are headed to credit unions....

    article
     
  14. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    LOL

    BofA alone has over 60 million accounts, Wells has 70 million.

    If ten times as many people move their accounts from just BofA it won't even be noticed.

    (note pledging to do it is one thing, actually doing it is a PITA)

    By the way, in my experience a lot of people have accounts at the big banks, paying higher fees for services/features they don't use and would probably be better served at either a smaller community bank or a credit union.

    Arthur
     
    Last edited: Oct 24, 2011
  15. The Esotericist Getting the message to Garcia Valued Senior Member

    Messages:
    2,119
    Yeah. . . I'm sure that is the majority of the people. Must be the reports I read are just a few disaffected kids. I'll have to listen to more Rush.
     
  16. The Esotericist Getting the message to Garcia Valued Senior Member

    Messages:
    2,119
    What? Those bastards? They're too cheap.

    Have you seen commodity prices lately? The metal in a US penny is worth, last I heard, about 2.1 cents. And the metal in a Nickel is at around 7.2 cents. I have an Anarcho-capitalist friend, who, I shit you not, when ever he comes over, will throw his dimes in my change jar and exchange them for nickles. Cheap ass bastard. Oh well, he's diligent, frugal and smart, I probably should be doing the same thing. I'm more of a don't worry be happy sort of person though.

    http://hahajk.com/politics/president-obama-bypasses-congress-and-issues-trillion-dollar-coin-to-raise-debt-ceiling/
     
  17. Orleander OH JOY!!!! Valued Senior Member

    Messages:
    25,817
    yeah, and the web site is hahajk.com (ha ha just kidding)
     
  18. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    Clearly it is the majority of the people.

    We have 310 million people.

    We have 84 million people below the age of 20, the majority of which are living with their parents/gaurdians and if over 6 for the most part are in school of some sort.

    We have 60 million people who are retired or disabled and collecting SS.

    Of the 154 millon people who want to work 140 million of them have jobs.

    Which leaves about 6 million more than we should have without jobs, or about 2% of our population, and as pointed out, 24% of these are in fact teenagers so in most cases aren't suffering because of not being employed.

    I'm not trying to minimize the pain the unemployed people feel, but a lot of them are doing things to once more get employed and aren't interested in rioting.

    Arthur
     
  19. milkweed Valued Senior Member

    Messages:
    1,654
    Yet from the article:
    The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people.

    http://www.bloomberg.com/news/2011-...-moving-merrill-derivatives-to-bank-unit.html

    Can you explain to me what the difference is? Seems to me the insured bank is backing (or paying off) the direvitives (sp?) with deposits that are covered by FDIC.

    Or am I misunderstanding the bloomberg article?
     
  20. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829
    There is some increased risk exposure to the bank due to the derivitives.

    The FDIC is objecting IN PRINCIPLE to allowing this move, because if a bank fails, it has to cover the insured deposits, so they don't want to set a precedent of allowing the increased risk by mixing investment banking with Deposit/Lending.

    I agree with the FDIC, but where the confusion is (as seen on this board), is that people are implying that the value of the Derivitives themselves are now being insured by the FDIC.

    They are not.

    Arthur
     
  21. Nasor Valued Senior Member

    Messages:
    6,231
    The dude apparently believes that the Fed prints money, any you want him to grasp the subtleties of a humorous parody website?
     
  22. milkweed Valued Senior Member

    Messages:
    1,654
    Thank you, but one final question for clarification.

    Is the basics, Bank of America is buying these derivitives, via the deposits of insured monies from Lynch? Isnt that what the transfer is all about?
     
  23. adoucette Caca Occurs Valued Senior Member

    Messages:
    7,829

Share This Page