Posted on 07/06/2009 2:08:29 PM PDT by anniegetyourgun
Bank of America will accept California IOUs, but it won’t credit depositor accounts for at least a week.
The fine print was included in an interview in Monday’s American Banker with a BofA spokeswoman.
(Excerpt) Read more at bizjournals.com ...
What happens when the bank is in serious trouble?
Thats when I left BofA and I told them these were the reasons when I closed my account.
No way would they give me cash back. If they don't already have that written down, somebody would figure out that "back door" on the spot. I'd be using a warrant for less than the registration, plus my own cash.
What ALWAYS happens when the bank is in serious trouble?: Federal bailout! Other clever posters have already suggested that this could be a back-door bailout of California, once October comes and goes and these IOUs aren't paid.
Holding checks is routing from BoA. I had $212K in a business account with them and they held a $12 check for 10 days.
I asked to speak to the manager, so she came, looked at the computer, made a face, then said to me “You’re not even in the Junior Executive Level” and walked off.
Not necessarily - once one bank starts accepting them, the rest really need to follow suit. Otherwise, depositors will flock en masse from, say, BOA to Wells Fargo.
The customer service payoff might justify any incidental losses from honoring the CA IOUs.
Yes, it is. That's one of the more odd aspects of this fiasco. It strikes me as completely irresponsible banking, unless the person who tenders the IOU is personally "on the hook" as one would be in taking out a loan.
LOL. Or with looterman.
Back before the days of pretty much universal free checking (1878), I had a checking account with BofA because my employer banked there, and if I had my pay automatically deposited, I got free checking.
Well, they had a branch in a high rise in Century City (LA). The service was terrible with long lines and not enough tellers. I complained several times, and one day the manager told me that the branch was only a “sub branch” as the real branch was now in one of the newly built twin tower high rises. Talk about not giving a S—t about your customers. He wanted me to walk 3 blocks to another building. The solution was to walk back across the street to my office building and open an account with United California Bank which had a $100 minimum balance for free checking. Wonderful service, problem solved. UCB later changed its name to First Interstate Bank which later was acquired by Wells Fargo. One thing about Wells, I have always gotten good service.
Were you lurking on FR by candlelight then?
BoA will be bailed out by the Federal Reserve/Government
This is how they will funnel money to California government, indirectly
Funny!!!
BofA was considered more marketable that North Carolina National Bank. The story of how the Carolina crowed snookered the big guys from California makes fun reading. Hugh McColl’s last big coup.
If McColl had still been around, it would have been the Fed and the Treasury looking for their wallets, not the other way around.
BofA does offer high-balance no fee accounts, making their money off of the use of your money for free. Given current interest rates, it can make sense.
I laugh every time I see looterman pop up.
I’m a girl, too, and I have done some Photoshopping, but it takes me WAY too long.
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