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TMFHousel (89.91)

Obama on Bank of America

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October 04, 2011 – Comments (16)

Here's President Obama on Bank of America's new $5 account fee:

"You don't have some inherent right just to – you know, get a certain amount of profit."

Let's take a look at those profits:

Net income, 2008: $4 billion

Net income, 2009: ($2.2 billion)

Net income, 2010:($3.5 billion)

Net income, 2011 (YTD): ($16.3 billion) 

So over the past four years, BofA has generated a cummulative negative $18 billion in profits. Your average lemonade stand is vastly more profitable. 

Food for thought.  

 

16 Comments – Post Your Own

#1) On October 04, 2011 at 2:01 PM, BillyTG (29.20) wrote:

So our President is totally clueless, and one of the biggest banks is incompetent.  I hope they both go bankrupt into the sunset.

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#2) On October 04, 2011 at 2:09 PM, thecherryz (90.70) wrote:

Permission to repost this on my facebook?  Lol.

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#3) On October 04, 2011 at 2:11 PM, LouieJunior (23.31) wrote:

BAC can charge whatever they want, for crying out loud. Nobody is compelled to bank there. If people do not wish to pay for the convenience of using their debit cards, switch banks or, better yet, use cash!

The left never considers the unintended consequences of its policies. Just like the old luxury tax on yachts -- remember who that hurt?

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#4) On October 04, 2011 at 2:20 PM, miteycasey (30.36) wrote:

How many Billions have been given as compensation in that period of time?

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#5) On October 04, 2011 at 2:47 PM, outoffocus (23.08) wrote:

The left never considers the unintended consequences of its policies.

Yea, how many fees would they be charging if they were allowed to fail?

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#6) On October 04, 2011 at 2:48 PM, catoismymotor (27.42) wrote:

Re: #3

BAC can charge whatever they want, for crying out loud. Nobody is compelled to bank there.

True

 If people do not wish to pay for the convenience of using their debit cards, switch banks or, better yet, use cash!

Simply switching banks may not be the quick fix you invision. Many banks that are $10b or larger in size are going this route because of a change in the law in how they charge for debit transactions. Smaller banks are not effected by the new laws so odds are they will not go that route in order attract new customers.

I like the idea of going to 100% cash. If you can't manage to do that change over to a credit union and use their debit card. I doubt they'll charge you a monthly fee ever to use it.

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#7) On October 04, 2011 at 3:01 PM, eldemonio (98.63) wrote:

I need a big brother government protecting me because I'm too stupid to look out for myself.

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#8) On October 04, 2011 at 3:41 PM, dcgatlanta (43.30) wrote:

Don't be fooled by President Obama's tough criticism of BofA.  No one has Wall Street's back like the Obama Administration.  The President's minions will be there for the banks whenever they need liquidity / a bailout.

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#9) On October 04, 2011 at 4:59 PM, devoish (98.31) wrote:

Don't get your shorts all in a bunch. The reporting on this story might be a little... off.

STEPHANOPOULOS: Can you stop this service charge?

OBAMA: Well, you can stop it because -- if you say to the banks, you don't have some inherent right just to, you know, get a certain amount of profit if your customers are being mistreated -- that you have to treat them fairly and transparently. And my hope is, is that you're going to see a bunch of the banks who say to themselves, "You know what? This is actually not good business practice."

So I guess there is more to the quote than reported, and I guess that Obama means us people types when he says "you can stop it", not the Gov because that would be "I" or "we" can stop it. Of course the role Obama wants the CFPB to play is to make sure that we know about the fee, not allow it to be hidden in forty pages of fine print.

I'm good with knowing about the fee.

Best wishes,

Steven

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#10) On October 04, 2011 at 5:04 PM, TMFHousel (89.91) wrote:

Thanks for publishing the full quote, steve. It does make more sense now. I pulled the quote from another site that didn't have it in the full context. Lesson learned. 

-Morgan  

 

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#11) On October 04, 2011 at 5:24 PM, leohaas (31.39) wrote:

Next time you quote someone, make it a full quote. This is what Obama said:

You don’t have some inherent right just to, you know, get a certain amount of profit, if your customers are being mistreated.” 

Clearly, the if clause is integral part of what he said. Feel free to disagree with what he said, just don't quote incompletely. That is the tactic of a scoundrel.

To read the full story, click here.

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#12) On October 05, 2011 at 12:21 AM, MyunderratedLife (89.95) wrote:

I don't see how the clause is really signficant to what Morgan wrote - he was just lampooning the part about profits.

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#13) On October 05, 2011 at 11:31 AM, Rehydrogenated (32.37) wrote:

Banks are just posturing. It will be like with airlines. Banks will add fees, other banks will advertise they have no fees, people will change to banks with no fees, banks with fees will lower their price to seem cheaper (even though it evens out with the fees). This will sufficiently confuse consumers for 5 years until the banks charging fees realize they are just increasing their own overhead without making any extra income and have a huge marketing event where they drop their fees.

Woot capitalism at its best!

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#14) On October 05, 2011 at 11:39 AM, sgt1917 (< 20) wrote:

Obama clearly believes in nationalization of banks and businesses.

I (and I trust the majority of Americans) believe in capitalism and free markets.

 Food for thought.

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#15) On October 05, 2011 at 12:23 PM, Frankydontfailme (27.38) wrote:

heh rehydrog. I don't think they're reposturing... I think they're desperate. I don't BAC will be around in 5 years.

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#16) On October 06, 2011 at 12:49 AM, BillyTG (29.20) wrote:

Reading of the BAC $5 debit fee, my first thought was that they were using the fee not so much to produce extra bank income as to flush out low-end-high-maintenance customers. So, a streamlining operation which would allow them to cut employees while retaining their high net worth customers. But, yeah they could be totally desperate and grasping for whatever nickels they can get. If that's the case, I'm having a hard time wrapping my brain around Buffett's intervention. He's not so dumb as to invest in a total loser is he?

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