In a post last week on this blog Bank of America, I highlighted some of the Greed, Bailout activity, Fraud, and Fees engaged in by that bank. But let’s be clear: The Bank of America is certainly not alone. Citibank, J P Morgan Chase, Wells Fargo, and other multi-state, multi-national banking powerhouses have all been involved in foreclosure scandals, bailouts, speculative gambling on hedge funds, the destruction of the global economy, and the imposition of fees on working class depositors.
And last but not least, let us never forget that the bailouts they received from Washington politicians of both parties – bailouts that were given, supposedly, because they were “too big to fail” - were given in reality because 25% of the funds the federal government borrows for deficit spending comes from these financial institutions. And since the American public pays federal income taxes to pay the interest on these debts, this results in yet another transfer of wealth from Americans to Corporate Banks who receive that interest.
But there is a solution.
WHAT? A massive transfer by average Americans of their money out of the banks and into credit unions.
Why? Because you will get better rates and fewer fees; your community banker will learn your name and provide you with more personal service; you will be keeping money in your local community which increases economic development and creates local jobs; you will make your voice heard, that you will stand strong and no longer be used as a pawn in a banking system that has run amok. You will be investing in Main Street - not Wall Street, where deposits are used for risky investments and gambling at the expense of the global economy. Beginning in 2008, Wall Street’s corporate banks demanded a bailout of $700 billion…and while the size of these Wall Street “Banksters” threatens our economic system, their size has actually increased since we bailed them out. According to FDIC data, the largest 5 banks held only 13% of US deposits in 1994; today they hold 38%. If the government won’t step in and apply Antitrust statutes to the Banking Industry and break them up, then we can do it ourselves and end ”Too Big To Fail” once and for all.
WHEN: “Remember, remember the 5th of November” goes a British child’s rhyme, in connection with Guy Fawkes Day (the character ‘channeled’ in the recent film, “V for Vendetta.”) Together we can ensure that these banking institutions will ALWAYS remember the 5th of November!! If the 99% remove their funds from the major banking institutions and support local non-profit credit unions instead on or by this date, we will send a clear message that Americans will not support rapacious and unethical corporate business practices any more.
HOW?
1) Research your local credit union options. Find one here: USA Credit Unions
2) Then, open an account with the one that best suits your needs.
3) Cancel all automatic withdrawals & deposits from your old bank
4) Transfer your funds to the new account, keeping some cash available until your new checks and debit card come through
5) Follow your bank's procedures to close your account before November 5.
Start NOW, because between your debit card, credit cards, direct deposit of paychecks, and automatic bill pay, the banking world has you practically captive.
NERVOUS? A wonderful post recently appeared on Reddit's Occupy Wall Street Forum, and I reprint it here in its unedited entirety:
I know most of you plan to move your bank accounts on or before November 5 and I just wanted to share the experience my wife and I went thorough today. I expect you'll likely have the same experience.
My wife had a BofA account from when she was in college. We went in to our local branch to close out her account.
First off, they are already feeling the squeeze of people leaving. The rep asked us if we were leaving because of the fees. My wife said she was for that reason. The rep then decided to try and educate us on the fees. Don't listen to them. My wife stood to her guns that she wanted to just join a local credit union to support our local economy, etc.. That ended the rep's attempt to keep my wife a customer.
My wife had her account closed and she pulled out all her money. Total time, about 20 minutes at most.
My experience was a bit different as I was with Chase, and had a lot more money in my account.
I walked into my local branch and spoke with the branch manager about closing my account. So she helped me.
Once we say in her cubicle, she asked me why I was leaving. I told her I wanted to move to a local bank and help with our community by investing in it by being a customer. I could tell this conversation was going to be difficult.
It literally took me 30 minutes to close my account. But the branch manager was freaked out because of me closing my account, she was worried her district manager would ask why I was closing my account. I then told her this, "look this isn't anything against you or any of your tellers in this branch. I'm just not comfortable having my life savings wrapped up with Chase. I've read plenty of news articles about shady practices Chase has been in. I'm worried that Chase invests money in other states with bad loans. I'm not comfortable letting a for profit company take everything I saved and make bad choices. I dont want to contribute to the cause. I want to take my money, put it in my local credit union, and help them give borrowing capability to my community."
She looked like she was about to cry. I didn't say it in a dick tone mind you. I just felt that she would have to answer to her boss why someone pulled their entire savings out in one day, she had to know the truth.
At any rate, my wife and I opened our new credit union accounts and we're happy. I'm in my 30s and I remember as a kid, banks used to have a personal feel to them and our credit union has that. Everyone smiling, chocolate candy dish at the front desk, it just feels good.
So the point of this rant is I wanted to just give everyone a heads up about these things:
• remember, the teller, manager, branch manager are not the enemy. They're part of 99% too and they need to earn a living. Please don't take your frustration of fees and other problems out on them. I almost did until I stopped myself.
• when asked about why you're leaving, be honest. Not happy with the $5 fee? Let them know. Not happy they foreclosed on homes of friends? Let them know. As we draw out our funds, the district managers will know something is up and ask their branch managers. If the branch managers have our feedback to give, it could really affect changes in the future.
• stick to your guns. If they dangle a free toaster in front of you, ignore it. It'll make things easier if you pick out a bank ahead of time. It took us ten minutes to find the one we liked. We compared the two banks and decided the CU was way better and was worth an hour or two of our time. If you have an idea of how much better a new bank is, it'll be easier to get rid of the old one.
• don't feel guilty for leaving your bank. I did for a bit, but kept reminding myself that our CU was going to make life easier.
If you feel compelled to tell the CEO of your old bank after you leave, do it. You might feel better. Just don't write any nasty things. Be honest and tell them you left because of this list of reasons. Sorry I you couldn't stay with them, but you found a better bank because they don't have these list of reasons after bank.
Here is a list of the big four banks I could think of. These are the email addresses of the CEOs:
Chase - jamie.dimon@jpmchase.com
BofA - brian.t.moynihan@bankofamerica.com
Wells Fargo - John.G.Stumpf@wellsfargo.com
Citibank - Vikram.Pandit@citi.com
Finally: When closing your bank account, be courteous on your way out the door and don't take it out on the bank staff.
For more information:
Move Your Money Project
Facebook Bank Transfer Day Page
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