Yet, people still bank with them, so either there are a lot of retards out there or they're doing something right.

stiletto_the_wise: Yet, people still bank with them, so either there are a lot of retards out there or they're doing something right.

CC debt too big to transfer to another bank. :\

/We were with Merrill before it got bought up
//Yeah, that wasn't such a great choice either!

stiletto_the_wise: Yet, people still bank with them, so either there are a lot of retards out there or they're doing something right.

They grew this big not by being a great bank but by taking over other banks. Like mine (Fleet Bank).

/Also they have a ton of ATMs all over the place. Actually probably several tons since those f*kers are heavy.
//Only have a small checking acct with them for convenience.

But if they fail, who will be there to butt fark the little people?

Unemployment payments in CA can be made in the form of a BoA backed EBT card for a small fee so at least they have that going for them.

stiletto_the_wise: Yet, people still bank with them, so either there are a lot of retards out there or they're doing something right.

Having read many of the articles greenlit on this site, I'm leaning towards the former of the two options you've presented.

BAC has some decent CD's

"The capped credit lines stem from a corporate overhaul launched by Brian Moynihan, who became Bank of America's chief executive in 2010. He promised to address losses caused by loose lending and rapid expansion by reining in risks and shedding investments deemed non-core."

Much like their foreclosure operations, they seem incapable of understanding that if they push too hard, they end up turning a revenue-neutral or possibly positive item on the balance sheet into a 100% loss. And what kind of sense does that make?

Sure, they probably never should have let a messenger service or beaded lamp shade business run up $80-$96k debts in the first place, but that's in the past, what's done is done. As long as they're making payments the money keeps coming in (and interest-only is awesome because it's just free money and the debt never goes away). It only makes sense to call their notes if you're willing to write them off as 100% losses. That's what's going to happen.

I do enjoy the BoA commercials where they show smiling employees and customers saying how gfreat they are and how hard they work. Great lulz

MaudlinMutantMollusk: Too Big To FailTM

Organize a 100 million people over the internet to boycott them, and they'd be floating tits up in the bowl within 6 months.

This all reminds me of mortgages back in the day.

OMG! BANKS ARE TOO PICKY AND DON'T LOAN MONEY TO POOR PEOPLE

And people really had a problem with it. We passed *laws* to make banks lend to more people who were previously unqualified for said loans.
Fast forward a few years and all of a sudden all these poor people were being foreclosed on.

And people really had a problem with it. It was all, 'OMG - Evil banks out screwing the poor little guy'.

I guess I don't understand what people want the banks to do. I read about banks using leverage (debt) to try and make a profit and people call them evil, irresponsible, and out to screw the little people. But then, when banks DON'T lend, and actually have money sitting around - then they are evil and out to screw the little guy. How dare they not lend out every penny they have to people/businesses that may or may not be a good fit.

I don't use BOA and I don't particularly like them. Maybe they are evil....but the article doesn't really give enough information.

Their financials are so shot, there are analysts who see BoA stock going under $1 this year.

Anyone who still has their money with BoA is a masochist.

Credit unions FTW.

Why the hell would a small business want to be with a bank that's too big to care about their needs?

Unless youre making hundreds of millions a year, you have no reason whatsoever to have an account with BofA, Citi, or whatever.

I'm right up there at the head of the line when I say "BofA sucks!" but with that being said let's take a look at a couple of quotes here

Kathleen Caid's Antique Artistry Studio in Glendale sells elaborately beaded, Victorian-style shades that she makes for lamps, chandeliers and sconces. She said she had understood that her $85,000 credit line would remain in place "as long as I wasn't in default," and she hadn't missed any payments.

Poor lady won't be able to over charge people for quality, hand made, over priced crap that a high school kid can put together in the 'macrame' portion of her art class.

Caid and her husband, Tim Melchior, a video producer with a Burbank media company, insist they are not in serious financial trouble despite having laid off her eight full-time employees and downsized her business space by two-thirds during the recession.

Yet Bank of America says that her credit-line debt, totaling $80,000, is due in May.

"I wouldn't have run it up if I knew what was in store," she said, adding that she would be speaking to an attorney and other banks about her options.

Gee if I thought for a minute that I'd have to pay back a loan at any given time then I wouldn't have racked up my debts.

This is just poor business management. First sell a product that people actually want and will use at a reasonable price and don't spend more than you can make.

I've had a small business for 12 years and I keep my prices sensible and always have enough cash on hand to pay off the debt I incur.

unlikely: BofA is a lying evil sack of shiat.

Uh huh... and if they give out credit to higher risk companies like the ones they're trying to squeeze off their books you'll come back and start yelling that they're irresponsibly throwing money around and this is why the economy is so farked up.

Not that I'm suggesting BoA isn't a lying, evil sack of shiat, but this particular move is actually a Good Thing for the bank, its investors and (most of) its customers. If you're a credit risk, you get credit at a higher rate or not at all. That's just how credit works and it's how BoA should have been doing things all along instead of just throwing money all over the place or buying up smaller shops that were doing that.

FlashHarry: citibank doubled my CC interest rate from 6.9 to 14.9 despite my having a 750+ credit score and never having missed a payment - ever. when i called to ask why, they told me it wasn't my fault but it was "due to economic issues."

i took GREAT pleasure in paying them off and NEVER using them again (nor any CC, save my costco amex, which i pay off monthly). they keep sending me offers and "please come back!" emails. F*CK them.

and F*CK bank of america.

Really don't quote me on this, but I think you can sue them for spamming or report them to some government agency. At least if there's no way to opt out.

Bank of America has been doing this for years. They are the Verizon of banks.

On a side note, the reason why they are doing this is because they are under pressure to "raise capital and cut risk". When push comes to shove, 99.9% of people/corporations are going to do what they have to do to save their own asses. And those are the facts of life.

Goodfella: there are analysts who see BoA stock going under $1 this year

I notice you didn't specify that these were good analysts.

As far as I can tell from reading recent reports on them, they're still predominantly viewed as buy or hold with an average forecast generally around $10 for 2012. The lowest forecast for the share price I can find is $6 and some (crazy) people have offered a high-end possibility of nearly $40.

Despite the stock's recent woes, it doesn't look like most professionals and ratings agencies seem too concerned that Bank of America is going anywhere anytime soon, or at least aren't much more concerned about BAC than they are any other financial stock.

MrEricSir: Why the hell would a small business want to be with a bank that's too big to care about their needs?

In fairness to small business owners, many took out loans years ago when their banks were only Slightly Too Big to Fail^TM:



The same thing is going on with home mortgages. Unless you can refinance a loan with someone else - or have the money to pay it off altogether - you have little choice but to get eaten by the bigger fish.

StandsWithAFist:

The same thing is going on with home mortgages. Unless you can refinance a loan with someone else - or have the money to pay it off altogether - you have little choice but to get eaten by the bigger fish.

Mortgages, Credit Cards, bank accounts.

I had 0 dealings with any of the big 4 prior to 2009. Now Chase pwns my life.

And in the process put a halt on a re-fi for my house, nearly cost me one of my cars (hey you should actually process the payments I send!), and jacked the interest rate up on the one card I had any balance on.

Thanks assholes!

stiletto_the_wise: Yet, people still bank with them, so either there are a lot of retards out there or they're doing something right.

When the wife and I bought our house, we did our research, sat for hours in meetings with mortgage brokers, read up about rates online, and did as much preparation as we possibly could.

Chose a smaller local bank, given that they impressed us with their attention to detail, and their bend-over-backwards attitude in helping us. When it came time to sign, we reviewed the contract, and asked about the clause that allowed our bank to "repackage or move the loan to another provide should certain financial circumstances occur" or some generality along those lines- I asked about it, and he said that only gets applied in cases of bankruptcy, default, or other ruinous events. Signed, done deal.

2 days later we get our first bill in the mail, along with a form letter from BoA informing us how smart we were choosing to go through them with our mortgage.

I keep looking around for a refi just to get it out of their hands, but nobody has been able to guarantee me that either a. ) they can't sell it off at will, and b.) even if I can't make sure they can't sell it at will, I'd like to be informed for who its going to, and the option to refi with someone else right then and there; ideally deflecting the selling process.

I raged quite hard that day. I don't bank with them by choice.

grinding_journalist: I raged quite hard that day. I don't bank with them by choice.

My parents financed with a S&L type firm that only deals in regional transactions. The firm really is out there to take personal savings and loan them to the community. I drive past their office regularly and see a sign saying "Bail out free since 1968".

Good luck at finding someplace that humble.

grinding_journalist: stiletto_the_wise: Yet, people still bank with them, so either there are a lot of retards out there or they're doing something right.

When the wife and I bought our house, we did our research, sat for hours in meetings with mortgage brokers, read up about rates online, and did as much preparation as we possibly could.

Chose a smaller local bank, given that they impressed us with their attention to detail, and their bend-over-backwards attitude in helping us. When it came time to sign, we reviewed the contract, and asked about the clause that allowed our bank to "repackage or move the loan to another provide should certain financial circumstances occur" or some generality along those lines- I asked about it, and he said that only gets applied in cases of bankruptcy, default, or other ruinous events. Signed, done deal.

2 days later we get our first bill in the mail, along with a form letter from BoA informing us how smart we were choosing to go through them with our mortgage.

I keep looking around for a refi just to get it out of their hands, but nobody has been able to guarantee me that either a. ) they can't sell it off at will, and b.) even if I can't make sure they can't sell it at will, I'd like to be informed for who its going to, and the option to refi with someone else right then and there; ideally deflecting the selling process.

I raged quite hard that day. I don't bank with them by choice.

Heh, our mortgage was sold like a month after closing. But at least it was to FreddieMac, and we still send our bill to the original holder. That I can handle. I would rage so hard if it were sold to BOA or Wells Fargo.

Splinshints: unlikely: BofA is a lying evil sack of shiat.

Uh huh... and if they give out credit to higher risk companies like the ones they're trying to squeeze off their books you'll come back and start yelling that they're irresponsibly throwing money around and this is why the economy is so farked up.

Not that I'm suggesting BoA isn't a lying, evil sack of shiat, but this particular move is actually a Good Thing for the bank, its investors and (most of) its customers. If you're a credit risk, you get credit at a higher rate or not at all. That's just how credit works and it's how BoA should have been doing things all along instead of just throwing money all over the place or buying up smaller shops that were doing that.



Why does a bank need investors?

Why Yes I Am A Wizard: Why does a bank need investors?

Because "bank" doesn't have the narrow, hayseed definition so many people seem to think it does.

The entity that is Bank of America isn't a bank in the sense you seem to be thinking it is, it's a bank holding company.

Splinshints: Why Yes I Am A Wizard: Why does a bank need investors?

Because "bank" doesn't have the narrow, hayseed definition so many people seem to think it does.

The entity that is Bank of America isn't a bank in the sense you seem to be thinking it is, it's a bank holding company.

Do banks loan their own/investors money?