Bank of America CEO on new debit card fees: our customers "will understand we have a right to make a - Polidicks

[release]WASHINGTON (CNNMoney) -- Bank of America's CEO defended his bank's new $5 fee on debit cards on Wednesday, saying that customers and shareholders understand the bank has a "right to make a profit." Bank of America (BAC, Fortune 500) CEO Brian Moynihan defended the move, which the bank announced last week in response to new caps on debit card swipe fees that the banks charge retailers. Bank of America's announcement of a new debit card fee was followed today by an announcement of new checking account fees by Citibank (C, Fortune 500). These new bank fees have fueled a populist backlash that has coincided with a series of protests against Wall Street banks around the nation. Moynihan stopped short of criticizing President Obama who earlier this week said to ABC that banks don't have an "inherent right" to a "certain amount of profit." But BofA's chief did say banks have an inherent right to make a profit in an interview Wednesday with CNBC's Larry Kudlow at the Washington Ideas Forum, sponsored by the Newseum, the Aspen Institute and the Atlantic magazine. "I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders," Moynihan said. Bank of America cutting 30,000 jobs Moynihan said that the bank will talk to its customers, teammates and shareholders and "they'll understand what we're doing -- understand we have a right to make a profit." Moynihan said the bank had made the fee clear and transparent to its customers and noted the bank had given plenty of advance notice because the fee won't kick in until next year. But he said the new charge was necessary because the "ability to be profitable" in retail banking has changed. He added that Wall Street reforms in the so-called Dodd-Frank Act will cost his bank "billions." When Kudlow asked Moynihan if he felt the bank was under attack, Moynihan said "no." "We have the best bank in the world, we do a great job for our customers," he added. Later, Moynihan was asked about an entirely different issue, whether he supported a proposed tax on millionaires that Senate Democrats proposed today. He said he'd echo what he hears from his millionaire customers: "Yes, but what for?" "If the belief is that it puts our fiscal house in order, then they support that," Moynihan said. [/release] [url=http://money.cnn.com/2011/10/05/news/economy/bank_of_america_moynihan/]Source: CNN Money[/url] When I first heard those comments, I thought "what? Why the hell would I 'understand' that I'm now paying for a service that used to be free just so you guys can make more money?"

These guys make enough profit as it is. It's not much; it's a 5 dollar fee (is it a recurring fee, or just an activation fee?), but holy fuck bank profits are massive, and now they are charging me money for debit cards. Seems silly. If Bank of America was anywhere near failing, I'd understand, but as it stands I completely disagree.

bank of america wouldn't issue me a debit card when i was a kid, they're a bunch of fucks wells fargo for life

And customers have a right to choose another bank

oh look, a bank being a dick, again.

If they don't make a profit, our government will just give them the money straight up out of our pockets anyway it already costs over $2 just to withdrawl money from a fucking ATM where I live

[QUOTE=Edthefirst;32655675]These guys make enough profit as it is. It's not much; it's a 5 dollar fee (is it a recurring fee, or just an activation fee?), but holy fuck bank profits are massive, and now they are charging me money for debit cards. Seems silly. If Bank of America was anywhere near failing, I'd understand, but as it stands I completely disagree.[/QUOTE] Why? If people are willing to pay, why should they not charge more?

[QUOTE=Edthefirst;32655675]These guys make enough profit as it is. It's not much; it's a 5 dollar fee (is it a recurring fee, or just an activation fee?), but holy fuck bank profits are massive, and now they are charging me money for debit cards. Seems silly. If Bank of America was anywhere near failing, I'd understand, but as it stands I completely disagree.[/QUOTE] The $5 a month fee is per month, if you use your debit card once, or twenty times in that month.

And what will happen when they start losing every customer?

[QUOTE=Shiftyze;32655923]And what will happen when they start losing every customer?[/QUOTE] Assuming that actually happens, which I doubt it will, they take back the 5 dollar charge and probably throw in some benefits to those who return.

When I was a child I thought of banks as a place to keep money safely, not a business trying to [I]make[/I] money.

[QUOTE=Ogopogo;32655895]The $5 a month fee is per month, if you use your debit card once, or twenty times in that month.[/QUOTE] Oh I thought it was just a one time activation fee, thought it was reasonable at first. You shouldn't have to pay $5 a month for a debit card when you already get charged at many ATMs. I would move to another bank.

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Like I always say, watch out when the word Fee is thrown around. All it means is Money for No Reason. Give me Money for No Reason please, it's a fee

This sort of shit is why I stopped using BofA and now use Navy Federal. It is a credit union, not a bank. Functionally, they are identical, but there is one key difference. What you are doing when you deposit money with Navy Federal is you are buying a portion of the company. A share. Every share is five dollars and the interest on your deposit is actually dividends being paid out on your share of the company. It still works exactly like a bank. You just aren't a customer, you are a part owner. They have proven to be better in every way possible to regular banks.

The worrying thing is that in 1995 there were 40 major banks in the United States. Today there is only 4, a clusterfuck of mega national corporation upholders. As well as this, a CEO in the USA has a wage ratio to the average worker of 475:1 The bourgeois have gone too far comrades.

[QUOTE=Sobotnik;32656351]The worrying thing is that in 1995 there were 40 major banks in the United States. Today there is only 4, a clusterfuck of mega national corporation upholders. As well as this, a CEO in the USA has a wage ratio to the average worker of 475:1 [B]The bourgeois have gone too far comrades.[/B][/QUOTE] I am afraid you won't succeed with this, here. [sp]The capitalist propaganda is too strong within people on FP[/sp]

It's ridiculous. Debit cards is so that you can't withdraw more than is in your account. And because that you can't withdraw more money than there is in your account, the bank can't make a profit. The bank actually makes a profit on your misfortune. It's a fucked world we live in.

[QUOTE=GunFox;32656255]This sort of shit is why I stopped using BofA and now use Navy Federal. It is a credit union, not a bank. Functionally, they are identical, but there is one key difference. What you are doing when you deposit money with Navy Federal is you are buying a portion of the company. A share. Every share is five dollars and the interest on your deposit is actually dividends being paid out on your share of the company. It still works exactly like a bank. You just aren't a customer, you are a part owner. They have proven to be better in every way possible to regular banks.[/QUOTE] Yeah, navy federal is great.

So, my debit card will be charged $5 per month if I use it that month or $5 every time I use it?

PNC bank is best bank

hey moneyhan [img]http://i.imgur.com/fOtuq.jpg[/img] pretty sure you're already making a profit...

[QUOTE=Ogopogo;32655895]The $5 a month fee is per month, if you use your debit card once, or twenty times in that month.[/QUOTE] Oh, if it's only this we have this in Canada already. I pay $11 a month for unlimited debit card uses in stores and whatnot, Free withdraws from their atms too it seems, only $1.50 from other companies atms.

[QUOTE=melonmonkey;32655881]Why? If people are willing to pay, why should they not charge more?[/QUOTE] Well as it turns out banks are sticky business. It hard to transfer banks because banks lock you in with good rates and transferring money is a pain, but it I'm not willing to pay the fee. What am I to do though? Switch banks? That's ridiculously tedious and not worth the effort and probably not worth the loss of money in rate changes and such. Bank of America knows this, and they are exploiting the relationship with their customers. Of course, if it really bothered me then I'd switch banks, but the simple fact remains; Bank of America is rolling in billions of dollars in profits. This fee is unwarranted and unnecessary, particularly during such a terrible economic time. 5 bucks isn't enough to break someone's bank, but for people having financial troubles, any fee is too much.

How many banks are doing this? Guess it's time for me to switch

Any one else use BB&T?

Just what I wanted! Being charged money to use my own money! This is honestly banks testing the waters to see how much people are willing to be exploited. Two years ago Time Warner Cable "tested the waters" with it's capped data plan where it had all previously uncapped. People in the testing areas started dropping the service like flies and they immediately backed out. I'm really hoping that same thing happens here. Give them an inch and they'll take a mile. Even if it's inconvenient for you switch banks and send in complaints, because I promise you if people put up with this it'll only get worse and more ridiculous simply because they know they can get away with it.

People don't dislike this kind of thing because they don't think the bank has a right to profit, they dislike it because they don't have unlimited trucks of money like banks do. And while we're talking about "rights" the customers also have a right to tell a bank to fuck off and take their business to another bank.

Yea, in canada my bank (royal bank) calls them surcharges. Mine is 4 dollars, but i signed up with a certain package where i get that 4 dollars back instantly every month. So essentially im banking for free.(or so i think)

[QUOTE=GunFox;32656255]This sort of shit is why I stopped using BofA and now use Navy Federal. It is a credit union, not a bank. Functionally, they are identical, but there is one key difference. What you are doing when you deposit money with Navy Federal is you are buying a portion of the company. A share. Every share is five dollars and the interest on your deposit is actually dividends being paid out on your share of the company. It still works exactly like a bank. You just aren't a customer, you are a part owner. They have proven to be better in every way possible to regular banks.[/QUOTE] This is exactly why I'm thinking of transferring to a credit union. I would be helping out locally