Bank of America to End Overdraft Fees on Debit Cards
This is great news and I applaud BofA for taking to the essence of the credit card reform bill and ended this predatory type of fee. Even myself, was under the impression that the reason we enter our pin number for debit purchases was to authorize a purchase and at that moment the terminal checked to make sure sufficient funds were in the account before running the transaction. I learned this was not the case and realized that a debt card holder could be charged thousands of percents of interest for the smallest transaction based on the fee that was charged on an annual basis. I hope to see more banks step up and do away with these fees and focus more on core banking tasks and true financial innovation to produce profits and value.
New York Times - In a move that could bring an end to the $40 cup of coffee, said on Tuesday that it was doing away with overdraft fees on purchases made with debit cards, a decision that could cost the bank tens of millions a year in revenue and put pressure on other to do the same.
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BofA modifies 12,700 mortgages under government HAMP program
Good to hear some homeowners are getting a reduction in their mortgage through the HAMP program. Problem is they need to really ramp it up because a total of 25,000 homeowners are a drop in the bucket. Still it is good to see some movement with BofA on trying to address these underwater mortgages to give the borrowers incentive to stay in the home.
Reuters - Bank of America has permanently amended home loan terms for more than 12,700 borrowers under the Obama administration’s main mortgage modification program, the bank said on Tuesday.
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Former Bank of America CEO Ken Lewis Sued by NY AG for Fraud
Good to see proper investigations are to taking place after this massive financial fraud that was bought to bear on people across the globe. In this case they are looking into the $16 billion dollars in losses that Merrill allegedly knew about when it was being acquired by BofA after the failure of Lehman Brothers. Being that the losses were that large and the amount of bonuses (in the billions) that were paid as part of the deal, rightfully there are serious questions that need to asked and accounted for. There are more skeletons buried on this so we need to keep looking until the daylight shines on them all.
Bloomberg - Former Bank of America Corp. Chief Executive Officer Kenneth Lewis was sued by New York Attorney General Andrew Cuomo for defrauding investors and the government when buying Merrill Lynch & Co. The bank agreed to pay $150 million to settle a related lawsuit by U.S. regulators.
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Bank of America Posts Loss of $5.2 Billion After Firm Repays Bailout
The market sold off strong today on 3 big banks (Wells, Morgan and BofA) all reporting losses and increasing of loan loss reserves. This throws a wrench in the whole recovery picture and brings uncertainty into the market which creates volatility. Goldman Sachs reports tomorrow and that will be very important, if they post huge losses then it will weigh on the markets and we could see the real correction everyone has been talking about coming true.
Bank of America Corp., the largest U.S. lender, posted a quarterly loss and its first full-year deficit in more than two decades, driven by the cost of repaying U.S. bailout money and defaults on consumer loans.
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BofA hires Brian T. Moynihan as new CEO
Looks like the board of directors went with an insider for the new top office job with Mr. Moynihan. I assumed they would go with a Bank of America company man over bringing in an outsider to be their new Chief Executive Officer. They really need someone who knows the culture inside and will have an overview of the operation so they can integrate their aquasitions into the larger brand and knows what units don’t work for their strategy so they can sell them off and reduce operational costs.
Wall Street Journal - Bank of America Corp. promoted Brian T. Moynihan to president and chief executive, ending an 11-week search with a unanimous boardroom vote in favor of a longtime insider.
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Bank of America to disclose details on Merrill Lynch purchase to SEC
No matter that the outcome of this investigation, it will be a good for Bank of America. This brings them one step closer to getting closure on this very curious situation. If I was a shareholder, I would be very frustrated to learn about these bonuses that were paid out before the merger. As a taxpayer I am very upset that will let taxpayer money in effect, go towards bonuses at a failed institution.
After this issue is resolved, we need to see a realistic repayment plan for the bailouts that both banks received. They can pay bonuses until they are blue in the face, just pay back the people who backed you up even in you should of had to face the music.
AFP, New York - Bank of America agreed to provide new information about bonus payments made to Merrill Lynch executives just before the bank acquired the troubled Wall Street firm last year, officials said Tuesday.
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Federal Reserve Possibly Delayed Merrill Lynch Loss Disclosures According to Internal Email
This just shows more of the opaqueness in our U.S. financial system. When we are looking to gain back trust and confidence, these types of findings are counter-productive but needed to put light on the issue of transparency and doing what is right now what is politically convenient. We still do not know where $2 trillion in loan agreements or where most the money from A.I.G went. These are important questions that should be asked and answered no matter how damaging it is. We have totally bailout out and propped up a bunch of actors that have been liquidated and sold to the highest bidder. Once the truth is known, then and only then will we have the information in hand to make the hard choices and put in place or enforce rules and regulations that will protect the investor and punish the overly greedy.
News (Bloomberg):
House Republican staffers said the Federal Reserve tried to control the timing of disclosures of rising losses at Merrill Lynch & Co. in the weeks leading up to its takeover by Bank of America Corp., according to a memo obtained by Bloomberg.
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