In 2008, it received 20 billion dollars in taxpayer-funded bailouts and 118 billion in government guarentees after it voluntarily chose to acquire the failing Merrill Lynch brokerage. Within months after receiving this bailout, the bank agreed to pay a $33 million fine to the U.S. Securities and Exchange Commission over its non-disclosure of an agreement to turn around and pay $5.8 billion in bonuses to Merrill Lynch Executives.
It purchased Countrywide Mortgage after it learned that the FBI had launched a fraud investigation on them. Then, in August of this year, Bank of America asked for and received $500 million in taxpayer funds from Fannie Mae for a sale of the bad mortgage debts it acquired from Countrywide.
This month, the Bank of America announced its intention of charging its debit card customers $5 per month for the 'privilege' of using their own money. At 57 million customers and a potential of $60 annually from each of them, I'll let you do the math.
And it gets worse.
My daughter goes to school U Mass-Amherst, where the sole on-campus bank is Bank of America. She was short funds, and asked me to run to our local Keene branch and make a deposit for her. As I made a mere $50 deposit, the following conversation ensued between the teller and me:
"You know, there's an $8.95 fee for this."
"What?! To deposit money in your bank?! Why?"
"Because it's a checking account that should be used online only"
"So how do you add money to it?!"
"Direct Deposit by your employer"
"But she's a full-time student, this is the only bank at her school, and this is the account they recommended she get!"
"I'm sorry...it's only a one-time fee."
"Oh, so once I pay this $8.95, I can make as many deposits as needed without additonal fees?"
"No, it's a one-time fee each time a deposit is made."
"Then it's not a one-time fee, it's an every-time fee!"
I felt like Alice at the bottom of the rabbit hole.
Fed up? There is an alternative: The Move Your Money Project
From their website:
The Move Your Money project is a nonprofit campaign that encourages individuals and institutions to divest from the nation's largest Wall Street banks and move to local financial institutions. Little has changed to prevent another financial crisis or to end 'Too Big To Fail,' and with Congress unwilling to act, we are encouraging individuals to take power into their own hands by voting with their dollars and no longer contributing to a financial system that has lead our country astray. We are a campaign that gives people real, concrete actions they can take to create a more sane, stable and localized banking system.
The site contains a serachable database of credit unions and places to bank locally.
Fed up with Wall Street screwing you? Do something specific about it. MOVE YOUR MONEY.
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