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Charlie Herman, business and economics editor for WNYC, looks at Bank of America's decision to downsize and layoff 30,000 workers.
Bank of America always screwed its customers, and now it is screwing its employees. Bank of America and others like it destroyed the economy because they were given carte blanche to do whatever they wanted with the assurance that consequences would never reach the top level. Republicans, ever the masters of double-speak, call this kind of destructive bastard "job creators" who need more protection!?!
Ever since I took my money out of Bank of America and put it in a local, Central Jersey bank, I couldn't be happier. No more crappy customer "service", no more $35 fee on a $2 accidental overdraft. No more smoke coming out of my ears when I hear news about poor, dear, put-upon Bank of America's problems.
I think BOA, is in constrictor, is a pretty apt name for this predator institution.
Amy, you are WRONG when you say:
"The gov't. never forced banks to issue mortgages w/no proof of income & assets."
Watch that youtube video of Cuomo when he was HUD Sec. Diff between redlining and enforcement of CRA was incidental.
And David, Dodd-Frank left Fannie-Freddie untouched and unconstrained to continue their underwriting of bad loans.
First, I think our hosts need not be so glib about thousands of people loosing their jobs through layoffs. This certainly assures the fact that there is no stability in this country as it pertains to jobs. Second, people really need to read the Dodd-Frank Wall Street Reform and Consumer Protection Act which addresses many of the problems with financial institutions that get too big to fail. Due to past deregulation we now find ourselves in this financial debacle that we are in. And to add insult to injury, many Tea Pots believe that this should be the normal course of business where financial institutions get to do what they like with no regard to their action's affect on the economy or the population.
please, when you talk about layoffs, ask about bonuses. and how much profit do they need to be profitable, anyway?
Mr. Herman, Yes, banks have paid back TARP.
How about paying back the HAMP that hasn't refi's most mortgages. Thus it didn't go to the credit of the mortgagees or become the liability on the bank that normal mortgage payments would.
It also wouldn't hurt if they lost the free $$ at the FED discount window. No more 3.5% interest free from Uncle Sam.
Sheldon -- FYI, banks have always been tight with Wall Street. In many ways, banks ARE Wall Street.
gary: There's a difference between not being allowed to deny loans to qualified applicants in redlined neighborhoods & writing mortgages so even PhDs can't understand them & pressuring applicants to sign mortgages they can't afford. The gov't. never forced banks to issue mortgages w/no proof of income & assets.
Jay & barent: Yes, & don't forget credit unions! (& barent, "don't feed the hand that bites you" is great!)
Why can't liberals distinguish between good regs and bad? Between regs that makes competition fair and those which favor the cronies of government?
Obama and the Dem Congress passed laws restricting the amount of penalty fees can be applied to negligent card holders. But nothing about fees for all card holders, such as annual fees or usery itself.
That's Obama----spread the wealth, and spread the agony. Character, integrity, performance, reponsibility (etc) are irrelevant.
The socialist, utilitarian, one-size-fits-all ethic.
First - the host doesn't have to sound so happy that thousands are losing jobs. Second - just how obscene are the executive bonuses going to be?
Ah Alvin - you're oblivious to sarcasm but I move on - If banks actually did what banks should do - make capital available to individuals and business, instead of easy money - nickel and diming their customers and gambling on wall street. They may be in more stable shape.
This makes me so angry! Homeowners where not responsible for the appraisals made on their houses, BANKS are! It's the banks that screwed everything up!
Please ask your guest again about the number of employees who will be effected by bank branch closing. When you first asked about that, he only spoke about how it probably won't effect consumers, which isn't the same thing. Thanks.
The main problem w/high fees for overdraft coverage wasn't so much the fees themselves as the fact that it was the default & the banks didn't notify customers that a transaction would go over their balance--they just paid it & then charged the customers, often much more than the amount over the balance.
All the more reason to take your money out of BofA and other too-big-to-fail banks and deposit it in local banks, which continue to expand and employ people (and loan money to support the economy).
put your money in small banks,it's not rocket-sci folks. there is political and economic power in doing so. don't keep feeding the mouth that bites you.
People may not have more trouble finding bank branches, but what about finding ATMs that don't charge you to take your own money out of your own account?
Oh, poor Sheldon and Gary. Sometimes the facts get in the way. Like when BofA arranged to pay up to 5.8 Billion to ML execs, but didn't tell BofA stockholders before its purchase of ML. And all of this --- "forced" takeover of ML, massive frauds about the bonuses --- took place under "business-friendly" Republicans (Bush administration).
BoA gets a bailout. 30,000 will lose jobs. But you better believe BoA will charge you more for "services" you perform yourself, like taking your own money out at the ATM!
Oh - poor BoA. The State put a gun to their head and forced them to buy and sell bad mortgages, and pay their execs 10's of millions in the process, and to buy Merrill Lynch by a Goverment they control. How will I sleep at night.
Layoffs? How else will Bank of America make up for the losses from all the risky mortgages the government forced them to buy?
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