Bank of America sold its global credit card business to Toronto Dominion. Bank of America's mortgage subsidiaries are embroiled in lawsuits by state Attorneys General.
AMERICAblog: The increasing Bank of America Deathwatch
Its stock has fallen nearly 50% this year—the worst decline for any big bank in the U.S. or Europe.
I only wish the deadpool I am in with my friend allowed for corporate entities: I'd love to put Bank of America on my 2012 list.
Should I feel sorry for a bank who altered my grandfathered Versateller account so I could be charged fees? Or for a bank who made my husband go in person THREE TIMES to supposedly close his account, then, when he thought his account had been closed, charged him with a low-balance fee? Why should people be charged after they go through the motions of closing their account? If you're a Bank of America representative maybe you could share this reasoning with us consumer riffraff.
Should my heart break for a bank that bought out my original credit card company and shortened the grace period, upped the transaction fee from 3% to 4%, instituted arbitration, hiked the potential default rate to 26.74 points beyond the prevailing prime lending rate? Balance and usage have nothing to do with it: I haven't used the card since 2004.
Florida Homeowners Foreclose on Bank of America
Should I feel sorry for a bank who attempted to foreclose on my uncle's Florida house which he's owned for 18 years because the bank messed up Countrywide paperwork? Or for a bank that doesn't process payments to Wikileaks? Should I weep tears for a bank that attempts to sell properties from under owners who have paid their mortgages in full, and is being sued for illegal foreclosures? This is the bank that makes legal US citizens and residents jump through Patriot Act hoops, but awards credit cards to illegal immigrants.
I'm not going to go into politics: it's obvious who gave this bank bailout money, and that the bank needs restructuring. Maybe a Bank of America or government apologist can explain why restructuring didn't happen in 2008, and if they think the bank used the TARP funds wisely.
update: well some apologist hailing from Bank of America's Jonestown, Guyana branch was here, paid no doubt to do damage control, which means candy floss spin and a complete disregard for the indisputable facts I posted here, and deliberate ignorance of my questions "why should my husband have to go in three times to close one account", "did the bank use TARP funds wisely", "why did restructuring not happen in 2008." See what suckers' Bank of America account fees pay for? It sure isn't documentation quality control.
I didn't choose to be with Bank of America. I didn't know in 1996 that my bank SeaFirst was going to be bought by Bank of America; nor did I know in 2000 that in 2006 my credit card company would be sold to Bank of America.
Yves Smith of the Naked Capitalism announced two weeks ago she was initiating a "Deathwatch" on Bank of America. As we are weeks away from the third quarter of 2011, five years after many 5/1 Adjustable Rate and otherwise subprime mortgages were sold in the frothiest of markets the "stated docs" era, or five-year interest-only mortgagees get payment adjustments, and some retail banking customers wake up and head over to their credit unions, it'll be interesting to see how Bank of America comes up with capital to meet its lawsuit payments, and payments to its own creditors. I tell you this, they won't make money directly through me.
In Mr. Moynihan's most candid remarks yet about the troubled mortgage business, he told the 6,000 listeners who Mr. Berkowitz said were on the call: "Obviously, there aren't many days when I get up and think positively about the Countrywide transaction in 2008."- Mish's Global Economic Analysis
Attorney General Brown Announces Landmark $8.68 Billion Sett...
Arizona Sues Bank of America
Illinois Attorney General Sues Countrywide
Nevada Attorney General Sues Bank of America
August 21st, 2011 at 06:08 pm 1313950100
Don't hate the player... hate the game.
BofA is like any other bank... they are in it to make money. They are no different than Wells, Chase, etc.
They did purchase Countrywide - and that move will pay off in the long run.
Capital? Check!
There will be bumps in the road - for all of us, right?! - but in the end, BofA is going to be just fine! I am proud to be an associates for such a fantastic organization.
August 21st, 2011 at 11:06 pm 1313967999
The Center for Public Integrity has a black list of the top 25 subprime lenders and their Wall Street backers who were responsible for nearly $1 trillion in subprime loans — that’s 7.2 million high-interest loans — made from 2005 through 2007.
“Together, the companies account for about 72% of high-priced loans reported to the government at the peak of the subprime market. Securities created from subprime loans have been blamed for the economic collapse from which the world’s economies have yet to recover,” the report says.
While 20 of the top 25 companies have been sold, closed or stopped lending (I still remain uneasy about employees of these companies simply migrating elsewhere), five of The Subprime 25 remain in business.
#8-ranked Wells Fargo Financial:
Total high-interest loans, 2005-2007: At least $51.8 billion
CEO John G. Stumpf’s 2008 salary: $878,920; $13,782,433 in total compensation
Federal bailout money received: $25 billion
#12-ranked Chase Home Finance (the consumer lending unit of JPMorgan Chase):
Total high-interest loans 2005-2007: At least $30 billion
CEO James Dimon’s 2008 salary: $1,000,000; $19,651,556 in total compensation
Federal bailout money received: $25 billion. JPMorgan also benefitted when the Federal Reserve Bank of New York guaranteed against losses $29 billion in shaky Bear Stearns assets, clearing the way for the company’s sale.
#15-ranked CitiFinancial (part of Citigroup)
Total high-interest loans, 2005-2007: At least $26.3 billion
CEO Vikram Pandit’s 2008 salary: $958,333; $10,815,263 in total compensation
Federal bailout money received: $45 billion in direct investment and federal guarantees on $306 billion in assets
Settlements over lending practices:
2002: Citigroup agreed to pay $215 million to settle Federal Trade Commission charges that Associates First Capital Corp., before it was acquired by Citigroup in 2000, had practiced systematic, widespread, deceptive and abusive lending.
2004: CitiFinancial was hit by a $70 million civil penalty by the Federal Reserve for subprime lending abuses.
#18-ranked American General Finance (part of AIG)
Total high-interest loans, 2005-2007: At least $21.8 billion
Former CEO Martin Sullivan’s 2007 salary: $1,000,000; $14,330,736 in total compensation
Federal bailout money received: $187 billion in federal loans, guarantees and direct investments
Settlements over lending practices:
2007: AIG subsidiaries agreed to pay $128 million after the Office of Thrift Supervision found they ignored borrowers’ credit when making loans and charged excessive broker and lender fees. AIG also agreed to contribute $15 million to financial literacy and credit counseling.
#20-ranked GMAC Financial Services
Total high-interest loans, 2005-2007: At least $17.2 billion
CEO Alvaro G. de Molina’s salary: Not available
Federal bailout money received: In 2008, the Federal Reserve approved GMAC’s request to become a bank holding company so it could obtain a $5 billion investment from the Treasury Department.
Settlements over lending practices:
2004: GMAC-Residential Funding Corp. and other companies agreed to cough up $41 million to settle a federal class-action lawsuit over predatory lending claims.
2005: Homecomings Financial Network Inc. (a GMAC subsidiary) and Fairbanks Capital agreed to forgive $11 million in debt and pay $773,000 in restitution, account credits and refunds to West Virginia homeowners.