Bank of America

In the couple of weeks since we switched from Bank of America to the North Carolina State Employees Credit Union, my family has moved from cautiously optimistic to very, very happy. Update below the fold.

Seven business days later.

If I had any hair on my head, I would have pulled it out today. Bank of America's website has been slow as molasses.

After more than 30 years as a customer of NCNB, Nationsbank, and now Bank of America, I began the arduous process of closing my accounts today. I say "arduous" because I have a host of automatic transfers and payments, plus a fully loaded online banking profile with more than 50 companies, individuals, and non-profit organizations listed in bill-pay. Switching banks is a total pain in the ass.

To put this change in perspective, I have generally not been unhappy with the service I've received from Bank of America over the years. In fact, it's been surprisingly good. I almost never pay fees, owing to a very high average balance in interest checking. And my local branch always responds to my calls, probably for the same reason. I am one of their private banking customers, and they have treated me well. But my being treated well as an individual comes nowhere near counter-balancing the assaults this institution has made on average Americans and on society in general. Whether it is through their incompetence or malice, I have come to see Bank of America as a predator, led in the marketplace by one of the most obnoxious CEOs I have ever encountered. Every time I read a report about him, it's clear that Brian Moynihan is a jerk, pure and simple. I will no longer tolerate even a distant association with him.

I know Mr. Moynihan and his C-suite colleagues won't care that they lost another valued customer. But maybe if a million other valued customers close their accounts, they'll finally get the point that the free market cuts both ways. Behave like an arrogant asshole and you'll eventually pay the price.

Over the weeks ahead, I will document the trials and tribulations of switching from Bank of America to the NC State Employees Credit Union, where I opened new accounts this very day. Wish me luck.

Dr. Ribar 'splains the snakiness.

The loss of customers is undoubtedly bad news for BofA and surely must have been anticipated by its management. Nevertheless, the new fee might still improve BofA's bottom line and leave BofA laughing all the way to, well, um, itself.

From the Financial Times :

Big US banks in talks with state prosecutors to settle claims of improper mortgage practices have been offered a deal that is proposed to limit part of their legal liability in return for a multibillion dollar payment.

The talks aim to settle allegations that the companies – Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial – illegally seized the homes of delinquent borrowers and broke state laws by employing so-called “robosigners”, workers who signed off on foreclosure documents en masse without reviewing the paperwork.

With a healthy chunk of change:

In a deal hatched in less than 24 hours, Warren Buffett is injecting $5 billion into Bank of America, providing a jolt of confidence to the ailing company while landing the famed investor $300 million in annual dividend payments.

Seems like a pretty sweet deal, unless you're already a shareholder:

Roy Cooper, please tell the Obama administration you will not sign on to the mortgage whitewash.

Hat tip to Ed Cone for uncovering this brutal analysis.

It's not as confusing as it seems. Okay, it is:

Excluding the settlement and other mortgage charges, the bank's second-quarter net income will be between $3.2 billion and $3.7 billion ... As a result of the settlement, Bank of America put its second-quarter loss at $8.6 billion to $9.1 billion. Excluding the settlement and other charges, the bank expects to post a quarterly loss of $3.2 billion to $3.7 billion.

Maybe this will help you sort things out: