Posted on 10/03/2011 5:12:05 PM PDT by Nachum
Banks should accept a lower profit so their customers won’t have to pay for debit cards, President Barack Obama told an ABC reporter today, when asked about Bank of America’s decision to charge its customers $5 per month for use of its debit cards. Before Obama’s interview, the bank was already facing financial difficulties. Bank of America’s stock was trading at $10 per share in mid-July. Today, as the president joined Democratic politicians in complaining about the bank’s decision, its stock fell from $6.10 per share this morning to $5.60 by the end of the interview.
(Excerpt) Read more at dailycaller.com ...
As the saying goes, he shoots from the lip.
Good headline.
Bank of America brought this on themselves. Just because one source of free money was dried up due to Congress, doesn’t mean they had to raise these fees.
It may be legal but was stupid in the political enviroment right now and their stock is crashing now because of it. Just because they CAN do something doesn’t mean that they should.
Bank of America was the worst bank I ever did business with and to see them in pain makes me smile.
I mostly agree. The prior CEO, Ken Lewis, ruined a wonderful franchise through his acquisitive greed by acquiring Countrywide and Merrill.
Still, I think that the President should keep his mouth shut on stupid BankAmerica debit card tricks and other charges. These will rise or fall on the competition from other banks. I think that's especially true when he links in his inevitable comments on taking a hit on profits in the interest of the consumer (of which BankAmerica has little).
A similar situation exists with airlines and baggage charges. These are kept in line by companies like Southwest, which run great commercials pointing out their competitor's charges. That's the way it should be here.
The Countrywide portion is currently hurting Bank of America, not the Merrill purchase. I wonder if they really wanted to buy Countrywide or if they were pressured to do so back in 2008. All the bank stocks are currently hurting also in part because of Europe, do these dems really want to be adding insult to injury at this time?
This little bastard is completely infused with redistribution-fairness, Pollyanna-like world-view. His mother nursed him on this, his father's absence confirmed it.
WHAT PLANET IS THIS GUY FROM????
Ok, sorry...had to get that off my chest. He’s the President - what right does he have to tell banks what level of profit they should accept - especially since HE is the one who put them in this position!
ARGH!!!
Finally a President who is not shy to tell companies what sources of revenues they should have, and which ones they should not! Who needs competition and the decisions of millions of customers when you have such a wise, wise leader?
WTF, did he take lessons from the North Korean despot?
Merrill isn't losing money now, but it cost them a bundle right after they bought it. I think the situation is the reverse of what you wondered--my understanding was that the CEO, Ken Lewis, bought Countrywide first, and then as things got worse during 2008, he made the bid for Merrill. After the bid, but before the deal closed, Lewis wanted to back out using the "material adverse change" clause of the agreement, because Merrill had a lot of losses in their portfolio above what he had counted on. Reportedly, he was threatened by both Bernanke and Secretary of Treasury Paulson that he had to go through with the deal, although they agreed to pick up some portion of the losses.
My info is from my recollection of the tale as told in the excellent book, "The Sellout", by Charles Gasparino.
I agree but it is rather disconcerting to see everybody on FR taking up for BoA now. Just because obama is talking bad about them does not make them our friends.
The banks continual raping customers with usuary fees is something to critisize, not take up for. And I agree about the airlines also, but you are wrong about them being kept in check. Some baggage fees now exceed $400 one way. Another reason I don’t fly anymore.
Or maybe I am different in NOT liking businesses RAPING me with outrageous fees.
Business “rape” you only if you pay their fees. Businesses should be allowed to charge what they want. They exist so as to make a profit. If you don’t like their charge, then don’t use their service.
Uuuuhhh, ever hear of re-education camps?
I don’t fly anymore and I sure as heck would never do business with BOA. If I had to fly, I would use Southwest. I would eat live worms, freshly dug out of a manure pile, with a dirty fork before I would do business with BOA.
So let the customers go to another bank. That’s the American way. Let the president shut his ()*&*^ pie hole!
Somebody should read that back to the _resident. I don’t know if we can survive until 2012.
The bank’s decision to charge customers for its services “is exactly why we need somebody whose sole job it is to prevent this kind of stuff from happening,” Obama told ABC’s George Stephanopoulos. “...You don’t have some inherent right to get a certain amount of profit ... Without those kinds of protections, we’re going to continue to see these kinds of problems.” “Unemployment is still way too high,” he said, adding, “That’s why it is so important for us to take every action we can take to put people back to work.”
I’m nearly speechless. The depths of ignorance on display here by a President of the United States is beyond imagining.
I never supported obama and I already bank elsewhere. Can you read or do you just project your feeling?
The fact is BoA sucks and so does obama?
I’m not sure what your gripe is. Like I said, let the customers go to another bank - like you - and let Obama keep his nose out of it. Let the market take care of BofA.
Who has the problem with reading and projecting their feelings?
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