I’ve been saying it for three years. Bank of America and Citicorp are insolvent. They are bloated pieces of shit propped up by Bernanke and the American taxpayer. Using loan loss reserves and accounting gimmicks to appear solvent has been a farce. They have run out of tricks and will now attempt to screw your grandmother by charging her huge fees for the privelage of keeping money in their checking accounts that pay no interest. They should both be liquidated. A zombie banking system is what has led to a 22 year economic malaise in Japan. Help push this bloated pig over the edge. Don’t do any business with them. Bleed them dry. Bankrupt them before they bankrupt us.
Raising fees at BofA is a desperate move
By David Trainer
Recent news that Bank of America is considering jacking up its fees on basic checking accounts suggests the company is bad shape. As I wrote Wednesday, I believe BofA stock is headed back to its lows and today’s news confirms my view that the expectations basked into the stock’s valuation are writing checks that the company cannot cash.
In my opinion, there are four actions taken by financial services that signal the company is headed to serious trouble.
1. Management shake-up and major layoffs – lots of layoffs over the past year
2. Exploiting accounting rules to boost earnings – SFAS 159
3. Drawing down reserves to boost earnings: to the tune of $13.3 billion in 2011 and 2012
4. Bilking customers with new fees: tried it before and trying it again
Bank of America /quotes/zigman/190927/quotes/nls/bac BAC +0.26% has taken all four steps. Bilking customers with new fees is a desperate measure of last resort because it requires exploiting the one asset the bank has left, namely its customers.
BAC’s business model is broken now. Without the bubble-level profits from investment banking and trading to subsidize its retail business, it can no longer attract the retail customer deposits with competitive checking and savings products. Reduced leverage rules mean the bank has less capital to trade as well. And the issues compound.
Making matters worse is that Bank of America is saddled with a bloated cost structure. A product of numerous acquisitions, the company still lacks the scale and efficiency needed to make a business of its size profitable.
In short, I reiterate Wednesday’s recommendation that investors sell BAC and the funds that allocate to it.
ecliptix543 says:
Fuck those fucking fucks. Citi is a raging piece of shit too, by any measure, but at least they’re just clever enough to NOT continually make headlines by being as much a band of fuckups and thieves as Skank of Amerika. Don’t just let Skank of Amerika die of its own diseases, let’s all help it along in any way we can. Picketing, scorning anyone who works there, and don’t any of you EVER let one of those pricks out of the parking lot in heavy traffic. Make them sit there as long as possible. Might as well yell obscenities and make colorful hand gestures at them too.
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2nd March 2012 at 10:22 am
Stucky says:
“Fuck those fucking fucks.”
+1,000 hahahaha
That’s as good a sentence as; fuck, fuck, fuckity fuck.
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2nd March 2012 at 10:32 am
Golden Tool says:
Gov should take over banks and make the tbtf’s sovereign banks. Ask yourself is there really any difference between banks and gov at this point? Both feed of the same tit, the taxpayer. Bring the tbtf banks into the sovereign, wipe the fed and the treasury. Problems solved. Reset button hit. Government take back your currency. Of course I give us 25 years before we are back in the same pickle but…
“Do unto others.”
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2nd March 2012 at 12:06 pm
Bob says:
I believe America’s last chance to partially right the ship went by the boards with Henry Paulson and TARP. TARP and all the trillions the Fed shoveled out behind the scenes at infinitesimal interest rates.
Ideally, all that money should have been poured back into the banks through the FDIC to keep the 99% whole. Then bankster management should have been thrown out and replaced, and the 1% left to prove whether they could recover their former station on their own.
I know this is alternative universe-type thinking, but just sayin’…
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2nd March 2012 at 12:14 pm
IndenturedServant says:
The most versatile word in the English language.
http://www.youtube.com/watch?v=ukTsqYfNo9U
I_S
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2nd March 2012 at 12:28 pm
AWD says:
Yesterday they’re getting billions in bonuses, despite being insolvent. Let ‘em croak. Get your money out of these criminal banks if you still have it there.
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2nd March 2012 at 12:59 pm
WiseFather says:
It looks like BofA needs another slapback. I’m so glad I moved my money last year. Although I did get my licks in.
You might like this direct action protest I took on my own against Bank of America. I called the credit card customer service line to do some “negotiating.” Having a bit of leverage, I thought it presented a great opportunity to mess with them a little without fear of retribution. I made a video of the call and posted it on my blog along with my comments about what happened and a fuller “director’s cut” transcript. Pay attention to his response to the classic line “Why does Bank of America hate Christmas?” Enjoy. http://www.ragingwisdom.com/?p=508
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2nd March 2012 at 1:34 pm
Novista says:
WiseFather
Thanks, very droll.
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2nd March 2012 at 9:11 pm
KaD says:
And the same for Wells Fargo and Chase.
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2nd March 2012 at 10:43 pm
Kill Bill says:
When you make a deposit, you are loaning a bank your money.
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2nd March 2012 at 10:53 pm