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Discussion in 'The OT' started by cj9788, Sep 30, 2011.
I can dream, can't I?
Nah - this isn't for Congress to decide - The banks' customers have the only important vote - don,t like it, leave.
Wasn't it government regulation that started this whole mess in the first place?
I had a mad account at BoA that I closed and went to a local credit union. They were going to start charging $15 a month if you didn't have a one time direct deposit amount of $250 and then the $5 debit fee. It wasn't worth it for that type of account. When I went in there they kept saying that the fees wouldn't take place right away but it wasn't worth it to me to see what they chose to do.
Technically it's the shareholders and the way that compensation bonus's are setup right now that drive it. No store will stop allowing debit cards to be used and because of that banks know they can inflate their rate of charge above what Visa and MC charge. Credit card transactions are lower because banks get the interest of the charge and they pay a nominal fee for visa/mc network transactions. Debit cards can only generate overdraft fees and while banks make a mint off of those they don't get them off of their middle customers who don't have high balance credit cards and use their debit cards for everything. So increased transaction fees is how they do it. Banks wouldn't go broke because of this but they wouldn't make the same level of profits. This to shareholders is the same as losing money.
Basically this is going to start turning into the retrans of banking. Some banks are already looking at creating another network that would rule out visa/mc fees (1-3% usually) and let the banks keep that as well.
I wonder when it is going to occur to people that there is a good chance that "they" are the shareholders as well. So while people may think of the shareholders as guys on Wall Street who make millions and live in opulence, the fact is that many regular people are shareholders.
Lots of mutual funds own bank stocks as to many public pension plans. The California Teachers Pension plan is one of the largest institutional investors in the country.
So anyone who owns a mutual fund, has a 401(k), a pension plan or any other type of financial investment benefits when banks and or other companies make money. I don't know what the % of household who own mutual funds is, but I guarantee is more than the 1%'ers, or even the 10 or 20%'ers.
Just because 60% of the shares of Bank of America are held by institutional and mutual fund owners, with the top 10 including Vanguard, Black Rock, etc., doesn't mean we 99% have anything to worry about.
Hmmm. Wait a minute, those same mutual fund operations appear in Wells Fargo's top 10 which is 77% owned by institutional and mutual fund owners, and JP Morgan Chase 74%, and Capitol One 88%, and....
That's the problem with an investment portfolio that is managed by someone else. You really don't know how much you will lose if Bank of America folded up.
unless you go with an index fund.
If you go with something indexed to, say, the NASDAQ 100 maybe, or to some targeted industry grouping. But people really never think about the major indices. For instance:
The S&P 500 includes (and there are more banking and investment companies):
Bank of America Corp
Capital One Financial
Fifth Third Bancorp
First Horizon National
Hudson City Bancorp
JPMorgan Chase & Co.
People's United Bank
PNC Financial Services
The Dow Jones Industrial Average (only 30 stocks) includes:
Bank of America
There are a large number of Americans whose portfolios or 401(k)'s include broad based index funds with investment lists that look like those above. And that likely includes at least some indignant people who moved their banking business elsewhere since 2008.
Thank you, Senator Dick (emphasis on the word "Dick") Turbin of Illinois: Wal-Mart and McDonald's CEOs bemoan new debit card purchase rules.
Dear DBSTalk.com members, on behalf of the People of Illinois, the Land of Lincoln, I take this time to apologize for imposing this a--hole on the country.
You mean Durbin.
No, I meant what I wrote.
The problem is now he has already taken credit for sticking it to the banks. The rest of the unintended consequences will never be pinned on him by the media.
Of course not, and why should he care? With the media in his corner, this just makes him look good. Never mind that it hurts business, which in turn hurts consumers.
Made tonights news,1000s are moving their accounts to credit unions.
I think I like you.
I will have to buy you a beer next time I make it in from the outer rim.
I wonder if Durbin gets any contributions from the Credit Union industry?
This reminds me of Schumer starting the run on IndyMac back in 2008. No accountability for the bozos in congress.