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(The New York Times)   Banks, which make money from other people's money, are closing branches where there isn't any money. Quick, to the Romerocopter   (nytimes.com) divider line 28
    More: Obvious  
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3034 clicks; posted to Main » on 23 Feb 2011 at 10:57 AM (4 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2011-02-23 11:14:18 AM  
Cue screenshot of the Chappelle Show: the skit wherein reparations were given and there were ridiculously long lines at the liquor stores because that's the only local place people could go to cash their checks.
 
2011-02-23 11:14:39 AM  
My bank is in Texas and I live in Missouri.

I get six no-cost ATM withdrawals from any machine each month.
I can deposit any check by scanning/taking a picture of it and uploading that image.

Why do I need a local bank again?
 
2011-02-23 11:24:32 AM  

madgonad: My bank is in Texas and I live in Missouri.

I get six no-cost ATM withdrawals from any machine each month.
I can deposit any check by scanning/taking a picture of it and uploading that image.

Why do I need a local bank again?


USAA?

\member
 
2011-02-23 11:24:42 AM  
I see these advertisements for Wal-Mart and other businesses that will cash your checks for a fee, and wonder, how can anyone NOT have a checking account in this day and age? Anyone?

/had one since I was about 14
 
2011-02-23 11:28:02 AM  
FTA: Wayne A. Abernathy, an executive vice president of the American Bankers Association, disputed Mr. Taylor's conclusion, as well as the significance of the data.

"You need to look at the context," he said. "We're looking at a pool of more than 95,000 branches, and we've had several hundred banks fail, so what would be surprising is if no branches had closed."


"We have 1% fewer bank branches this year than last year, the first time in 15 years - so what? Big deal. Move along. Move along."
 
2011-02-23 11:29:23 AM  

Pick: I see these advertisements for Wal-Mart and other businesses that will cash your checks for a fee, and wonder, how can anyone NOT have a checking account in this day and age? Anyone?

/had one since I was about 14


It is usually people with significantly different situations than you. For example, people who are not here legally. People who do not want a paper trail of their financial transactions.
 
2011-02-23 11:40:38 AM  

MycroftHolmes: Pick: I see these advertisements for Wal-Mart and other businesses that will cash your checks for a fee, and wonder, how can anyone NOT have a checking account in this day and age? Anyone?

/had one since I was about 14

It is usually people with significantly different situations than you. For example, people who are not here legally. People who do not want a paper trail of their financial transactions.


There is this credit service "ChexSystems" that banks use to keep track of you and your credit/banking history. If you have something on it you can't get a checking account.

http://www.creditinfocenter.com/FeaturedArticles/ChexSystems.shtml

Items are supposed to only stay on the history for five years, but just like credit history, creditors will renew the listing to keep it current.
 
2011-02-23 11:42:35 AM  
"Banks, which make money from other people's money, are closing branches where there isn't any money."

In other news, water is wet.
 
2011-02-23 11:42:55 AM  

MycroftHolmes: Pick: I see these advertisements for Wal-Mart and other businesses that will cash your checks for a fee, and wonder, how can anyone NOT have a checking account in this day and age? Anyone?

/had one since I was about 14

It is usually people with significantly different situations than you. For example, people who are not here legally. People who do not want a paper trail of their financial transactions.


....and people who are flagged by Chexsystems.
 
2011-02-23 11:47:04 AM  
bank of america charged me $14 because my checking balance fell below $1,500.

i still can't walk right.
 
2011-02-23 11:49:13 AM  
Read a statistic somewhere that 20% of people in the US do not have a bank account because they either can't handle/have mishandled one, or don't want one.
 
2011-02-23 11:58:49 AM  

locomotivebreath1901: "Banks, which make money from other people's money, are closing branches where there isn't any money."

In other news, water is wet.


Banks no longer make most their money from other people's money. They make it from fees. Why put money to good use when you can siphon it off from their accounts? Fees for checking, fees for low balances, fees for seeing a real person at the bank... And you can make financial products to charge more fees!

/credit unions FTW.
 
2011-02-23 12:06:12 PM  
Around these parts there are at least 2-3 banks / credit unions at almost every intersection. It's gotten to the point where when I see new construction starting I don't get excited any more because I know it's got to be a bank. I could never understand how they could be profitable with such high saturation. I see now that they weren't.
 
2011-02-23 12:09:22 PM  
And for those with short attention spans, another post.

This is similar to the 'food deserts' in cities and rural areas that happen when supermarkets force local grocers out of business, then withdraw from poorer areas due to the lower opportunity for profit. This creates a situation where people need cars and need to travel long distances to get food. Of course, this amplifies the difficulty for poor people who have very limited time or money to go shopping. And therefore go for the twinkies, boxes of mac and cheese, and other unhealthy processed foods.

Much like banks moving out and shady check cashing / payday loan businesses moving in.
 
2011-02-23 12:12:39 PM  
Banks USED to make money from other people's money by helping those other people manage that money, store it, invest it, use it to take out loans, etc.

Now banks make money by ordering your disbursements by size instead of by order/date, by charging foreign-network ATM fees, etc. I suspect they are actually closing brick-and-mortars in locations that have a large representation of the underclass, which typically do not hold bank accounts. (compared to lower-middle and up.)

I didn't read the article. Don't really hold an opinion on a private business making private business decisions. Just wanted to be snarky about how banks make money.

Oh yeah, they invest in horrible mortgage-backed securities too, that makes lots of money.
 
2011-02-23 12:20:26 PM  

Cerberus: And for those with short attention spans, another post.

This is similar to the 'food deserts' in cities and rural areas that happen when supermarkets force local grocers out of business, then withdraw from poorer areas due to the lower opportunity for profit. This creates a situation where people need cars and need to travel long distances to get food. Of course, this amplifies the difficulty for poor people who have very limited time or money to go shopping. And therefore go for the twinkies, boxes of mac and cheese, and other unhealthy processed foods.

Much like banks moving out and shady check cashing / payday loan businesses moving in.


And why would poor people not have time? They have the same 24 hours I have.
 
2011-02-23 12:24:15 PM  
Regardless of whether a bank's profits come from fees and atm charges, or from loans and such, it is still making money from other people's money. That's what they do. It's what they have always done. Anyone not aware of this probably can't be trusted with a $5 bill. And it still makes sense that banks would not want to spend money on physical branches that do not contribute to their profit influx. If a certain area is less well off, it means less money is flowing from hand to hand through the bank. Closing unprofitable physical branches is just smart.
 
2011-02-23 01:07:33 PM  
Were these branches opened in areas where people don't use banks and can't qualify for loans but CRA made the banks open them anyway?
 
2011-02-23 01:12:55 PM  
UNHbeta19:
And why would poor people not have time? They have the same 24 hours I have.
I lived within the city limits of a couple mid-sized cities, in decent neighborhoods. I had a car, therefore getting food, going to a bank, etc. is easy, not to mention there was a supermarket nearby to each of the places I lived. 5 minute drive, easy.

Now, let's say I was poor, and lived in a bad neighborhood, because that's what I could afford. Distances to these services have now increased by a factor of 2-3 times. Hopefully I have enough money for a car, otherwise I hope public transportation goes to these places, or I have to walk. Now my 5 minute drive one way has turned into an hour-long travel ordeal... maybe I have to wait for some infrequent bus to arrive as well. So what might be a half hour shopping trip for the well-to-do me, has turned into a 2+ hour ordeal for the poor person.

Let's say this person isn't a welfare case, and works enough to live off of. How many hours do they need to work to provide at minimum wage? 40? Be real. And this person won't be working 40 at any one job because that would give them benefits. So they're working 2 jobs (or more) and need to commute between them.

If you're working 10+ hours/day at your 5 day a week job, good for you. You probably get paid well for it. If you live out in the exurbs and commute 2 hours to work, you at least have had the choice and money to manage your situation. They don't.

You tell me how the working poor finds enough time in the day to get their stuff done when they have few transportation options to the places they need to go, and services have moved out of their neighborhoods because of profit margins. Don't be stupid.
 
2011-02-23 01:14:47 PM  

MycroftHolmes: Pick: I see these advertisements for Wal-Mart and other businesses that will cash your checks for a fee, and wonder, how can anyone NOT have a checking account in this day and age? Anyone?

/had one since I was about 14

It is usually people with significantly different situations than you. For example, people who are not here legally. People who do not want a paper trail of their financial transactions.


So when they pay their taxes, do they use cash?
 
2011-02-23 01:18:33 PM  

Cerberus:
You tell me how the working poor finds enough time in the day to get their stuff done when they have few transportation options to the places they need to go, and services have moved out of their neighborhoods because of profit margins. Don't be stupid.


I have a solution - and they can eliminate one of the largest nonessential monthly payments in low-income households.

Stop watching TV.
 
2011-02-23 01:28:01 PM  

fatbear: Cerberus:
You tell me how the working poor finds enough time in the day to get their stuff done when they have few transportation options to the places they need to go, and services have moved out of their neighborhoods because of profit margins. Don't be stupid.

I have a solution - and they can eliminate one of the largest nonessential monthly payments in low-income households.

Stop watching TV.

I like it! I dropped my TV service a while back.
/What about intarwebs? Obama says it is essential!
 
2011-02-23 01:30:35 PM  

Cerberus: UNHbeta19:
And why would poor people not have time? They have the same 24 hours I have.
I lived within the city limits of a couple mid-sized cities, in decent neighborhoods. I had a car, therefore getting food, going to a bank, etc. is easy, not to mention there was a supermarket nearby to each of the places I lived. 5 minute drive, easy.

Now, let's say I was poor, and lived in a bad neighborhood, because that's what I could afford. Distances to these services have now increased by a factor of 2-3 times. Hopefully I have enough money for a car, otherwise I hope public transportation goes to these places, or I have to walk. Now my 5 minute drive one way has turned into an hour-long travel ordeal... maybe I have to wait for some infrequent bus to arrive as well. So what might be a half hour shopping trip for the well-to-do me, has turned into a 2+ hour ordeal for the poor person.

Let's say this person isn't a welfare case, and works enough to live off of. How many hours do they need to work to provide at minimum wage? 40? Be real. And this person won't be working 40 at any one job because that would give them benefits. So they're working 2 jobs (or more) and need to commute between them.

If you're working 10+ hours/day at your 5 day a week job, good for you. You probably get paid well for it. If you live out in the exurbs and commute 2 hours to work, you at least have had the choice and money to manage your situation. They don't.

You tell me how the working poor finds enough time in the day to get their stuff done when they have few transportation options to the places they need to go, and services have moved out of their neighborhoods because of profit margins. Don't be stupid.


You've described someone who has no money anyway. What would they do with a checking account?
 
2011-02-23 01:43:48 PM  
img443.imageshack.us

It's at Fred's house.
 
2011-02-23 01:45:53 PM  

Cerberus: fatbear: Cerberus:

Stop watching TV.
I like it! I dropped my TV service a while back.
/What about intarwebs? Obama says it is essential!


I still remember the phone call I made to the cable company in the mid-90s when I got one of the first cable modems.

"Hi, I'd like to order cable internet.."
"OK, With basic cable that's per month."
"No, I don't want cable. Just internet."
"What do you mean?"
"I don't want to pay for something I dont' use. I don't have a TV."
"You don't have a TV?"
"No."

"What do you do?" This wasn't the context of "what do you do for a living" but "what do you do when you get home?" She was truly baffled.

Of course, this was BF. (before fark)
 
2011-02-23 01:47:44 PM  

Cerberus: And for those with short attention spans, another post.

This is similar to the 'food deserts' in cities and rural areas that happen when supermarkets force local grocers out of business, then withdraw from poorer areas due to the lower opportunity for profit. This creates a situation where people need cars and need to travel long distances to get food. Of course, this amplifies the difficulty for poor people who have very limited time or money to go shopping. And therefore go for the twinkies, boxes of mac and cheese, and other unhealthy processed foods.

Much like banks moving out and shady check cashing / payday loan businesses moving in.


For the truly enlightened I see that it's not enough to say that grocery chains don't open in slums. Instead, it seems first the chains drive all the virtuous grocers out of business. Then they withdraw because they can't make money (wouldn't you think their margins would be higher once they had driven the competition out of business?).

There are plenty of grocers in poor areas. They sell crap food and lotto tickets because that is what people want to buy.
 
2011-02-23 01:51:23 PM  

Cerberus: Banks no longer make most their money from other people's money. They make it from fees.


So... from other people's money, then?
 
2011-02-24 04:40:00 PM  
All the Ferrari dealers moved out as well.
 
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