Beyond Tea-Party Somnambulism!

Posts tagged ‘banks’

Top 13 Reasons To Leave Bank of America!

The Coalition of Eastern Shore Progressives (CESP) will be staging a protest this Saturday, November 5th, at 11am.  The group is targeting the local Bank of America branch, located at 1145 S. Salisbury Blvd, across from Salisbury University.

Bank Too Big To Fail???

This action is being held in conjunction with MoveOn.org’s National Event, urging members to move their money out of the Big Banks that were responsible for the financial meltdown and continuing attacks on their customers and the American taxpayer.  There will be hundreds of protests across the country, at local branches of Bank of America, Wells Fargo, Chase, Citigroup and other Banks Too Big To Fail.  It is hoped that the action will generate changes at banks, and additional government regulations that will prevent the same type of financial debacle as the country suffered in 2007, including the massive unemployment, foreclosures and loss of $20 trillion in Middle Class wealth.

Here are some of the many reasons why Bank of America is being targeted:

1. BoA Announced They Are Backing Down From Their Shocking New Debit Card Fee After HUGE Protests: Despite dropping a $5 debit card fee, BoA has other fees beginning in ‘12. Sen. Dick Durbin’s (D-Illinois) response to customers: “Vote with your feet. Get the heck out of that bank.” 

2. BoA, Despite Being Bailed Out By Taxpayer Money, Paid No Taxes. BoA paid NO federal taxes in ‘10 (or ‘09), by posting a pre-tax loss of $5.4 billion. It also cited a tax benefit of $1 billion!

3. BoA Has Spent Millions Lobbying To Gut Reforms With Your Tax Dollars. Despite being bailed out to the tune of billions of dollars by the federal government, BoA still has the gumption to spend millions in DC, battling new reforms meant to prevent another financial meltdown.

4. BoA’s Practices Are At The Nexus Of The Foreclosure Crisis. BoA CEO Brian Moynihan raised eyebrows recently when he excitedly cheered for faster foreclosures of Americans’ homes.

5. BoA Has Announced That It Is Laying Off 30,000 People. The 30,000 job cuts are double what any other U.S.-based employer has announced so far this year, even after billions in bailout money.

6. Despite A Poor Economy, BoA Continues To Reward Executives With Multi-Million Dollar Salaries & Bonuses. Despite blaming the economy for layoffs & its new fees, BoA continues to deliver huge paydays to its executives.

7. BoA Rejects The Right Of Customers To Protest. CEO Brian Moynihan has been quoted as saying that protesting customers will not be allowed in the local branches!

8. BoA Takes Advantage of American Soldiers. BoA entices soldiers to take out loans at usuriously high rates. Personal loans to soldiers for a few thousand dollars can keep them indebted for the rest of their lives. Last May, BoA paid $22 million to settle charges of improperly foreclosing on active-duty troops.

  9. BoA’s Lawsuits.BoA is charged (with JP Morgan Chase & Wells Fargo) with conspiracy, along with 2 credit card companies, Visa & MasterCard, to keep ATM fees high; in other words, “price-fixing.”

"Let Them Eat Cake! I'll take their homes!"

 10. BoA’s Derivatives Position Keeps Rising. The total derivatives in the FDIC-insured portion of BoA, mid-year, was $53.7 trillion, up 10% from $48.9 trillion in 2010. The bank has $5 trillion of credit derivatives, nearly double its $2.7 trillion pre-Merrill amount.

11. BoA Got the Most AIG Money Of The Big Depositor Banks. Buying Merrill’s AIG-related portfolio, BoA got to kept $12 billion worth of Federal AIG bailout funds. Its ’08 bailout included $15 billion for the bank & $10 billion for Merrill, plus an extra $20 billion in Jan ‘09. Former BoA CEO Ken Lewis’ personal take, a $63 million retirement plan.

12. Even After Lawsuits & Customer Outrage, BoA Still Pleases Investors Over Customers. Investors won part of the $8.5 billion settlement, but were upset that BoA was servicing loans, instead of foreclosing them. The bank has $30+ billion in residential mortgage loans in default, which will become foreclosures for thousands of American families.

13. BoA Leads the Big Bank Fraud Lawsuit Settlement Tally. BoA is being sued by State & Federal regulators for its foreclosure practices. One of 17 US financial institutions being sued by the Federal Housing Finance Agency for billions in mortgage-securities losses that may require BoA to repurchase $50 billion in fraudulent securities.

11 Facts You Need to Know About the Nation’s Biggest Banks

I usually don’t repost articles from the internet, preferring to rant and rage with my own words!  However, I thought this article, posted by the website, Truthout.org, was so important for you to see, that I’m posting here:

The Occupy Wall Street protest that began in New York City more than three weeks ago have now spread across the county (see http://www.Occupy. The choice of Wall Street as the focal point for the protests — as even Federal Reserve Chairman Ben Bernanke said — makes sense due to the big bank malfeasance that led to the Great Recession.

While the Dodd-Frank financial reform law did a lot to ensure that a repeat of the 2008 financial crisis won’t occur — through regulation of derivatives, a new consumer protection agency, and new powers for the government to dismantle failing banks — the biggest banks still have a firm grip on the financial system, even more so than before the 2008 financial crisis. Here are eleven facts that you need to know about the nation’s biggest banks:

– Bank profits are highest since before the recession…: According to the Federal Deposit Insurance Corp., bank profits in the first quarter of this year were “the best for the industry since the $36.8 billion earned in the second quarter of 2007.” JP Morgan Chase is currently pulling in record profits.

– …even as the banks plan thousands of layoffs: Banks, including Bank of AmericaBarclaysGoldman Sachs, and Credit Suisse, are planning to lay off tens of thousands of workers.

– Banks make nearly one-third of total corporate profits: The financial sector accounts for about 30 percent of total corporate profits, which is actually down from before the financial crisis, when they made closer to 40 percent.

– Since 2008, the biggest banks have gotten bigger: Due to the failure of small competitors and mergers facilitated during the 2008 crisis, the nation’s biggest banks — including Bank of America, JP Morgan Chase, and Wells Fargo — are now bigger than they were, pre-recession! Pre-crisis, the four biggest banks held 32 percent of total deposits; now they hold nearly 40 percent.

– The four biggest banks issue 50 percent of mortgages and 66 percent of credit cards: Bank of America, JP Morgan Chase, Wells Fargo and Citigroup issue one out of every two mortgages and nearly two out of every three credit cards in America.

– The 10 biggest banks hold 60 percent of bank assets: In the 1980s, the 10 biggest banks controlled 22 percent of total bank assets. Today, they control 60 percent

– The six biggest banks hold assets equal to 63 percent of the country’s GDP: In 1995, the six biggest banks in the country held assets equal to about 17 percent of the country’s Gross Domestic Product. Now their assets equal 63 percent of GDP.

– The five biggest banks hold 95 percent of derivatives: Nearly the entire market in derivatives — the credit instruments that helped blow up some of the nation’s biggest banks as well as mega-insurer AIG — is dominated by just 5 firms: JP Morgan Chase, Goldman Sachs, Bank of America, Citibank, and Wells Fargo.

– Banks cost households nearly $20 trillion in wealth: Almost $20 trillion in wealth was destroyed by the Recession, and total family wealth is still down “$12.8 trillion (in 2011 dollars) from June 2007 — its last peak.”

– Big banks don’t lend to small businesses: The New Rules Project notes that the country’s 20 biggest banks “devote only 18 percent of their commercial loan portfolios to small businesses.”

– Big banks paid 5,000 bonuses of at least $1 million in 2008: According to the New York Attorney General’s office, “nine of the financial firms that were among the largest recipients of federal bailout money paid about 5,000 of their traders and bankers bonuses of more than a million dollars apiece for 2008.”

In the last few decades, regulations on the biggest banks have been systematically eliminated, while those banks engineered more and more ways to both rip off customers and turn ever-more complex trading instruments into ever-higher profits. It makes perfect sense, then, that a movement calling for an economy that works for everyone would center its efforts on an industry that exemplifies the opposite.

Originally published on ThinkProgress

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