Brian Moynihan: Most Hated Man in America?

They can only be the one percent so long as we keep feeding them our money.

I would have to imagine that any list of "to-be-guillotined jerks" would include Bank of America CEO Brian Moynihan.

He's smarmy, in the way that makes regular folks like my mom want to reach across the table and slap the snot out of him. He combines this elite mix of arrogance and ignorance that allows him to function as a CEO while living in a world where no one, and I mean no one, seems to want to call him out on his bad decisions and incredibly obtuse statements.

Showing that he has absolutely no loyalty to his customers, Moynihan and BAC has decided to tack on a $5 a month fee to anyone who uses one of their debit cards during the month. Why? Because Congress found that banks were charging astronomical, arbitrary fees to retailers who allowed consumers to use debit cards. When Congress figured out what was going on, they passed a law limiting those fees.

Now they want to tack on a $5 per user fee to their debit cards, not to recoup the costs of the processing program, but simply because they are gluttonous monsters who feel they can do whatever they damn well please.

"After years of raking in excess profits off an unfair and anti-competitive interchange system, Bank of America is trying to find new ways to pad their profits by sticking it to its customers," Senator Dick Durbin said in a statement Thursday. "It's overt, unfair and I hope their customers have the final say."

It's worse that just padding their profits simply because they can. They are doing so just months after the company took a giant bailout loan from the U.S. taxpayer. Can you even imagine the gall? Could you imagine taking a life-saving loan from a friend, and then, once you're back on your feet, you charge him money to use anything?

It's not like the banks are losing money on debit cards. They still make money off the deposits in those accounts, which with fractional banking, is an obscene amount of profit. They still can charge $0.24 per transaction to retailers...just not the $0.44 they were charging before. The excuse that they need this money and therefore can justify no-lube sticking it to their customers is just pure, unadulterated crap.

Not to worry. America's favorite hackers have uncovered the personal details of one Brian Moynihan. Want to file a protest with him? Mail it to his residence at 26 Wachusett Rd., Wellesley Hills, MA 02481. Or perhaps you want to call and let him know his $5 fee is a crock and that you're switching banks. If so, try him at (781) 235-1004. Just be polite and let him know I sent you.

Now, it's probably illegal to actively encourage a bank run *wink wink*, but if a lot of folks who banked with a jackass zombie bank like Bank of America JUST HAPPENED to close their account at the same time, on the same day, that would certainly get their attention, wouldn't it?

Well, Moynihan clearly needs to be smacked across the face with that clue by four, doesn't he? Perhaps Americans will empty out their bank accounts at Bank of America and instead deposit those funds in a local credit union. Why a credit union? There are a number of reasons, actually.

Credit Unions are owned by their members. When you make a deposit into a credit union account, you're actually becoming a member, an owner...and not a customer. Because credit unions are owned by the very people who use the services, the fees are low or minimal. You will be hard pressed to find a credit union that would ever charge anything as outrageous as Bank of America's $5 fee.

Credit unions are also non-profit entities. While banks suck away every penny they can get their grubby little hands on, credit unions focus on service within the community. While a bank will gladly hike fees to increase profits, credit unions have a structural incentive to keep fees low. I mean, would you raise your own rent? Of course not!

Which brings me back to the original point. Why on earth would you keep your money in a bank when a credit union is a better deal? This is doubly true when you consider what your money is funding. Money kept in banks like Bank of America go right toward the profits that line the pockets of scumbags like Moynihan, who take and take and take, and have no idea how to give back to society in any meaningful way.

In the meantime, activists have set up a date to make your political statement with your money. On November 5, 2011, close your account at Bank of America and other large, destructive banks, and instead deposit that money in a local credit union account. If it happens to harm their bottom line, you can bet your bottom dollar we the people won't stand for bailing them out again.

Bank of America: Bailed Out Again?

The Obama administration says the Dodd-Frank financial reform law ends "too big to fail", meaning that no financial institution will again need to be bailed out. The promise is alluring, but it's already proving to be false.

The argument rests on the premise that bank capital is high enough to withstand shocks, so a calamity is less likely. It also assumes Dodd-Frank's resolution authority allows global financial institutions to be wound down in an orderly fashion, and that the law's call for "living wills" ensures that banks provide all the technical details regulators might need to take prompt pre-emptive action.

Consider the law's promise in the context of Bank of America. Through the back door, US regulators are facilitating another round of implicit bailouts, putting more taxpayer money on the line in the form of guarantees. Bloomberg Regulators has allowed the bank to move highly risky derivatives contracts - and the associated downside risk - from Merrill Lynch into the insured retail deposit-taking part of the bank.

The move puts the Federal Deposit Insurance Corp on the hook for any losses. The FDIC's deposit-insurance funds come from its member banks, but because the agency can tap a US Treasury line of credit if the fund runs dry, taxpayers could be at risk, too.

This condones the continuation, or perhaps escalation, of taxpayer-backed gambling on a grand scale - and by people who aren't very good at it. The US is heading in the direction of Europe, where state-backed banks repeatedly bring everyone to the brink of disaster.

Bank of America is a behemoth beyond control. Its destruction of shareholder value is shocking. The Wall Street Journal reported on October 19 that the bank has spent $US148 billion on acquisitions since 1998 and its value is $US65 billion.

Bank of America is also badly managed. In 2008, its chief executive, Ken Lewis, agreed to pay $US4 billion to buy Countrywide, a disastrous foray into mortgage origination and distribution that will probably end up costing shareholders more than $US60 billion. The New York state Attorney-General, Eric Schneiderman, is calling for a full investigation of mortgage abuses; Countrywide must be very much in his sights.

Lewis bought Countrywide after a year's worth of due diligence and then grabbed Merrill Lynch over a weekend in September 2008, apparently without much thought. Significant extra losses were the result.

Why the FDIC would agree to escalate taxpayer subsidies is a puzzle. The Federal Reserve apparently pressed for this move, which required an exemption from the usual rules. This outrage demands investigation.

Does Bank of America have enough capital to avert disaster? It has $US2.2 trillion in assets, making it the second-largest bank in the US. The book value of its tier-one common equity is about $US117 billion - hardly a robust buffer against the shocks that appear likely from mortgage litigation and the European debt disaster. Investors believe that much of this capital will be wiped out - hence the lower market valuation.

A large chunk of its most recent profit turns out to be due to the decline in the market value of its debt because investors realise it is in so much trouble.

If the bank really had enough capital, it wouldn't have needed to move its derivatives risk on to its FDIC-insured deposit business. Nor would the Obama administration be resisting the New York Attorney-General's efforts to organise a full and fair mortgage settlement.

Could the resolution authority be used on the bank? Definitely not in a way that would bring calm to the markets. Merrill Lynch is a global business and the resolution authority is domestic. Legal and financial experts agree that the Dodd-Frank resolution authority doesn't help manage the orderly liquidation of a global bank.

There could be a conservatorship, but that is just a long word for full creditor bailout. Or there could be a bankruptcy, with the kind of collapse seen after Lehman's failure. Those are the choices.

Could the living-will provision make a difference? The FDIC claims it would have handled the problems at Lehman differently if the Dodd-Frank powers had been in effect. But the essence of the argument is that the FDIC would have acted before the problems got out of control. Given the politics of the regulatory process and the predisposition of Treasury not to act early, I am sceptical.

So here is a fair test for this part of Dodd-Frank. Bank of America should be broken up, spinning off Merrill Lynch along with other structural changes. Will the regulators pursue this course of action? Breaking up the bank would be good for the country, should help stabilise the financial system and could even create value for its shareholders.

Such an action would draw support from the right and the left.

Bank of America should be forced to break itself up. Make the pieces small enough and simple enough to fail. Then let the market decide.

Bank of America: Being Difficult in Florida

Bank of America is poised to make it increasingly difficult for their legions of customers to waive the hugely unpopular $5 debit card fee, which is to go into effect next year. The second-biggest bank in Central Florida is to eliminate its Advantage checking program, which required no more than $5,000 in overall deposits in order to see the $5 fee waived. As of now, it will require at least $20,000 in order to enjoy the same privilege, forming part of the bank’s new ‘Premium Solutions’ offering.

However, customers who currently hold a mortgage with Bank of America will also be able to waive the fee, according to official reports.

Bank of America CEO Brian Moynihan spoke about the new move, stating that the increase in required deposits is designed to encourage customers to bring more business to the bank. This of course contradicts the millions who have labeled the new initiative as nothing more than profiteering, which is something the bank refused to respond to.

Bank of America has approximately $6.8 billion in Central Florida deposits and the fear now is that it will be those least able to afford the debit card fees who will be hit the hardest in order to further profit the bank.

Bank of America: Shut Down by Protestors in Washington, DC!

WASHINGTON, DC (October 24, 2011) — Two groups of demonstrators have staged protests at Washington banks, railing against profits by the banks in the current economy.

The first protest Thursday at a Citibank branch in northwest Washington was led by demonstrators who have been camping in the city’s Freedom Plaza since Oct. 6. Earlier this week, Citigroup Inc. reported its third quarter rose 74 percent.

Another group of about 30 demonstrators from the Occupy DC movement, which has been camping in McPherson Square, marched to a Bank of America branch later in the day. The group chanted “banks got bailed out, we got sold out” and “Bank of America, bad for America.” One person closed his bank account at the branch, saying he planned to take his approximately $8,000 to a community bank.

Bank of America: Shut Down in San Diego!

Downtown's Bank of America branch on B Street shut down early on the afternoon of October 20 out of safety concerns: approximately 25 protesters, most part of the Occupy San Diego movement, staged a peaceful “teach-in” and protest in front of the bank.

For roughly three hours, several protesters talked to anyone who would listen about how big banks like Bank of America helped to perpetuate the current economic crisis and accepted large bail-outs at the expense of taxpayers.

Protesters chanted, “Remember, remember, the fifth of November,” the date on which thousands of people nationwide have pledged to close their accounts with large banks and transfer their funds to local credit unions.

“Corporate greed has taken over politics,” said one of the protesters, Christopher McKay. “The banks got bailed out, the CEOs made millions of dollars, and the American people got left behind. The American people need to understand that financial security with big banks is not safe. These banks gave bad loans out on purpose. We are coming to a bank near you.”

McKay and his fellow protesters covered the bank’s entrance with signs that had a variety of messages and calls to action. Many protesters stood on the edge of the sidewalk with their signs, garnering honks of support from many who drove by. Several police officers were onsite throughout the protest but did not interfere.

Corbin, a younger protester attending the event with his siblings, said he felt compelled to take to the streets because he is “tired of the banks controlling where the wealth goes.”

Organizers planned to be at Wells Fargo’s downtown location Friday and intended to continue targeting other banks.

Bank America Refuses To Let Customers Close Accounts

The Bank of America refused to allow customers to close their bank accounts Saturday, October 15, 2001, because they were members of Occupy Santa Cruz. Management at the bank told the two women who attempted to close their accounts that they could not be protestors and customers at the same time. Ok, read that again. You can't be a protestor and a customer at the same time! Since when can a bank, who is holding a person's money, tell said customer when they are allowed to be a customer?

The women where threatened with arrest if they did not exit the bank. Incredibly, after the women called the police on the bank, an officer spoke with management and came out to speak with the women only to reiterate and agree with their prior statement. Amazingly, Bank of America was not the worst bank on the customer service meter on Saturday. Citibank actually had quite a few of its customers arrested for attempting to close their bank accounts. Protestors who arrived at the bank where arrested for disorderly conduct.

Bank of America DOWNGRADED by Fitch Ratings

October 13, 2011: Fitch Ratings has placed Bank of America Corporation's Viability Rating (VR) of 'a-' on Rating Watch Negative.

The firm said the drivers for placing BAC's VR on Rating Watch Negative center on heightened uncertainties regarding capital market and economic conditions and implications for future performance.

Fitch also said ongoing size of pending litigation risks relative to other firms and comparatively weaker capitalization are concerns. Litigation risks include the following: 

Fitch's uncertainty regarding court approval of the June settlement related to Countrywide RMBS Securities, more recent AIG and FHFA lawsuits, ongoing MBIA and State Attorney General litigation, as well as other potential legal issues.

In addition, BAC's loan exposure to the U.S. residential real estate market remains a concern to Fitch, particularly given the potential for continued pressure on real estate values combined with economic uncertainties.

Finally, there are concerns about the heavyhanded and inept collection practices of Bank of America subsidiary, FIA Card Services.

Bank of America Launches "Irrelevant" Advertising Campaign!

Bank of America Corp, under fire for everything from improper foreclosures to hiking debit card fees, is fighting back with advertising.

The bank is running TV, print and online ads through the end of the year in 12 larger markets, including Charlotte, Boston, Chicago, New York and Los Angeles, as well as some smaller communities, said bank spokesman T.J. Crawford.

The ads describe the bank's charitable donations and small business loans, as well as its efforts to ease loan terms for underwater mortgage borrowers, known as "loan modifications."

"The campaign aims to deliver the facts about Bank of America's local impact," Crawford said. "Sharing the significant work we do at the local level and critical role we play is more important than ever."

Bank of America's critics were not impressed.

The ads are "irrelevant," said Kathleen Day, spokeswoman for the Center for Responsible Lending, a Durham, North Carolina-based nonprofit that advocates for homeowners. "The only thing that matters is that they and other banks clean up their servicing operations so they can do more loan modifications and never do the same thing to the economy again."

Bank of America and other banks launched similar campaigns when they faced criticism in 2009 for taking government bailout dollars.

Large banks have paid back that money but face continuing outrage over their mishandling of foreclosure paperwork, new fees they are charging consumers, and the continuing economic fallout from the financial crisis. BofA's CEO, Brian Moynihan, had a bad day when "gotcha journalism" confronted him with the abusive collection practices used by an agency paid with bailout dollars. Moynihan, to his credit, promptly fired the agency but failed to answer the question as to why the agency had been retained in the first place.

The "Occupy Wall Street" movement has spread from New York to other cities around the country, including the bank's hometown of Charlotte, North Carolina.

Bank of America Announces Maryland Layoffs

Twenty employees at the Bank of America home loans office at 5300 Westview Drive, Frederick, MD 21703 will lose their jobs beginning Nov. 7, 2011.

Scott Wallace, manager of the Dislocated Workers Service Unit, Maryland Department of Labor, Licensing and Regulation, said the state was notified on Sept. 27 of the personnel cuts.

"They are the only cuts in Maryland by Bank of America," Wallace said Friday. Bank of America said it is cutting 40,000 jobs in the next two years.

Rick Simon, a spokesman from Bank of America's mortgage loan operations center in California, said the office in Frederick was closed as a result of the challenging economy and a move to consolidate mortgage loan offices.

The company is looking at a nationwide market of $1 trillion to $1.1 trillion compared with $1.5 trillion last year, Simon said.

"We have to align our capacity to the current environment and create efficiency," he said.

While most banks have a central office for mortgage loans, Bank of America had a regional approach, Simon said. The Frederick office won't be consolidated into another office, but existing loans will be handled by another office in the region. Simon did not know specifically which office would handle local loans.

"The consumer will not see any difference," Simon said. "The loans will continue in the time they were contracted for."

Employees who will lose their jobs at the home loans office at Westview Drive are being encouraged to apply for openings at Bank of America locations, Simon said. But with the tight market in the banking field it could be difficult to find an opening locally, he added. Simon did not know of any other specific layoffs in the Frederick area at this time.

The bank has three commercial banking locations in Frederick: 31 W. Patrick St., 1070 W. Patrick St. and 805 W. Seventh St.

"We will meet them and let them know their options," Wallace said of the state agency and the dislocated employees.

Bank of America has been in the news recently for announcing it will charge $5 a month to customers for using debit cards. Customers have also been unable to log onto their accounts for a week as technical problems continue on the bank's electronic network.

Based in Charlotte, N.C., Bank of America has 288,000 employees in 5,900 banking offices and serves 57 million customers in 150 countries.

Frederick County Workforce Services, which offers retraining programs and assistance in job searches, was aware of the layoffs.

"Although this is not good news for the Bank of America employees, there is other good hiring news," said Laurie Holden, director of Frederick County Workforce Services.

A job fair is set for 10 a.m. to 2 p.m. Nov. 4 at the Monroe Avenue Campus of Frederick Community College, 200 Monroe Ave.

Frederick County Workforce Services, The Frederick News-Post and the college are sponsoring the job fair.

The area has seen a number of major layoffs, from 600 job losses at Alcoa Eastalco Works five years ago to 600 at JPMorgan Chase credit card center in 2010 and 320 at BP Solar in March.

Frederick County's unemployment rate was 6.3 percent in August and 6.7 percent in Frederick city. Maryland's rate was 7.4 percent. Statewide September unemployment figures will be released by DLLR on Oct. 21. Local rates will be released Oct. 28.

Bank of America Gives "Golden Parachutes" to Krawcheck and Price

This is disgusting.

The Bank of America is ruining people's lives and taking their homes.

Even though Brian Moynihan may be moving in the right direction by getting rid of the likes of Price and Krawcheck, this really does send the wrong message.

It should come as no surprise that many people are calling for a boycott of the Bank of America!

Two ousted Bank of America executives, Sallie Krawcheck and Joe Price, will receive $6 million and $5 million, respectively, under newly signed agreements smoothing their departures from the bank.

The agreements came about a month after a management shake-up at the big bank led to the departure of Ms. Krawcheck, one of the most prominent women on Wall Street and president of the bank’s global wealth and investment management, and Mr. Price, a longtime Bank of America executive and president of its consumer and small-business division.

In the documents, signed on October 6, 2011 and filed with the Securities and Exchange Commission at about 4:15 p.m. Friday, both executives are promised “installment payments” equivalent to their annual base salaries — $850,000 apiece, paid out over the next year — as well as a “one-time supplemental lump sum payment” of $5.15 million for Ms. Krawcheck and $4.15 million for Mr. Price.

By contrast, Ms. Krawcheck received total compensation of $6.2 million last year and $1.9 million in 2009, according to the bank’s regulatory filings. Mr. Price received $917,027 last year and $6.1 million the year before.

In their final agreements with the bank, both executives agreed not to take jobs with competing companies or recruit Bank of America employees for a year. They also promised not to badmouth their former employer. Violating the agreement could let the bank cut off their installment payments.

The two agreements have a few curious differences. A sentence in Mr. Price’s reserves his “ability to bring an action to enforce the terms of this Agreement”; no equivalent language appears in Ms. Krawcheck’s agreement. Ms. Krawcheck’s agreement, meantime, twice explicitly reserves her right to indemnification, while Mr. Price’s raises the issue just once.

The two agreements are mum on the subject of cashing out equity awards to the two executives. Stock options and restricted stock often make up the biggest rewards for executives shown the door, and previous Bank of America filings suggested Ms. Krawcheck could receive as much as $4.6 million from cashing in stock she held as of the end of December.

Bank of America: Wall Street Loser!

October 3, 2011: Citigroup (C) and Bank of America (BAC) were the big losers among large U.S. financials Monday, with shares of both companies plunging 10%.

Citigroup closed at $23.11 and Bank of America closed at $5.53. Citi's shares have declined 49% since undergoing a reverse split on May 6.