Forum Post: Bank of America's 6 Billion Dollar Profit Story---Spread it around, it will bring more people into the movement
Posted 13 years ago on Oct. 18, 2011, 11:38 a.m. EST by SolveEtCoagula
(97)
This content is user submitted and not an official statement
http://www.huffingtonpost.com/2011/10/18/bank-of-america-earnings-report_n_1017153.html
everyone in middle america was furious over the $5 debit charge etc.....send this all around, it will get more "everyday" folk into the movement
---move your money out of the criminal big banks, people---- go local---credit unions----more socially conscious small savings----search around-----they aer FDIC insured too---and give better rates , services...plus no debit card fees!
this thread is interestnig -http://occupywallst.org/forum/did-the-va-office-of-loan-gaurauntee-in-atlanta-en/
BofA is a criminal
move your money out of the big banks, they have all been involved in criminal activities the big 4 chase, bank of america, citibank, and wells fargo
you bailed them out.......now they increase their fees
go local : )
guys, spread the B of America profit story all around...it will infuriate middle america, and rightly so
thanks for the bumps.....: )
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http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html
Actually you should just move your money because this bank is doing terribly and it acted morally and ethically reprehensible. www.moveyourmoneyproject.org
http://robinhoodtax.org/ Tax all global financial transactions 1% watch: 'The Banker' vid about the Tobin Tax spread this as one of the main demands.
Use that fund (trillions) to pay for collectively identified & agreed goals From Earthquake relief, to famine, to health concerns, and more importantly to Policy Shift - climate change mitigation through Energy policy shift, Food policy shift, and healthcare policy shift, education policy shift, jobs creation through infrastructure - old to new- shift that. Those things can be paid for and more.
lol troll fails...keep bumping my message, thanks
http://treason123.blogspot.com/2010/02/bank-of-americacrimes-beyond.html
http://occupywallst.org/forum/example-of-bank-of-america-crime-illegal-foreclosu/
knowledge= bought and paid for troll : )
http://www.zerohedge.com/article/no-big-banks-have-not-paid-back-government-bailouts-and-subsidies
knowledge I shall start another thread about bank of america's crimes shortly, good going, mr troll : )
knowledge is a bought and paid for troll
B of America is a criminal enterprise, do some research and you will see
move yr money to local banks, credit unions etc....screw the big banks
moveyourmoneyproject
chase, bank of america , citibank, and wells fargo do not deserve your money in their holdings
go local people
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koko post a link to a better news one, and Ill edit out the huffington post one. thanks
They posted paper profit because of accounting tricks.
"The most recent quarter included, among other things, $4.5 billion (pretax) in positive fair value adjustments on structured liabilities, a pretax gain of $3.6 billion from the sale of shares of China Construction Bank (CCB), $1.7 billion pretax gain in trading Debit Valuation Adjustments (DVA), and a pretax loss of $2.2 billion related to private equity and strategic investments, excluding CCB."
6.2 bil profit minus 4.5 bil FVA minus 1.7 bil DVA equals ZERO. They sold of the China bank to help offset their other losses as well. BoA is in trouble and owning Countrywide isn't helping, they're bleeding money everyday from that cesspool of toxic mortgages. So the $5 fee isn't to just make more money, it's to not lose as much. Despite what many may think they are not complete morons, I imagine they calculated the accounts they would lose from starting a $5/month fee will actually save them money from having to maintain thousands, if not millions, of tiny accounts. It's not free for them to record keep on some account that has perpetually low balances.
stop serving your corrupt masters, trolls....they will eat you up along with everyone else
http://occupywallst.org/forum/banks-did-not-actually-pay-back-the-bailout-money/
b of america---charging more fees, not just debit, while making money off YOUR money....this after they took a gov't bailout....before which they engaged in all sorts of shady actions involving illegal foreclosures, obscure derivative shennanigans, and using their loot to corrupt our democracy....
spread the story around to people who dont watch the news
ignore banking-employed trolls....employed by criminal bank enterprise....
Your comments here just shows that you don't know anything about how to read financial statements. You show the 6 billion and talk about new fees being added, as if the new fees are bogus because of the 6 billion. Well, they aren't. First of all, if you would read the earnings report you would know that the 6 billion number was largely from and accounting change and from the sale of an asset. That would be the same as you selling your car for cash and claiming you got a raise. That would be pretty stupid to think, now wouldnt it? Well it's the same thing as thinking a company is doing well because of proceeds from the sale of an asset. The true measure of how well a company is doing is from ongoing operations.....such as debit card usage. The fee for debit cards came about because the democrats, in the financial regulation law they passed, reduced how much banks can charge the retailers. The banks are simply making up for the revenue the government had denied them. Banks have to be allowed to cover their expenses.
Soooooooo, the whole premise of this bitch you have is unfounded, huh.
If you don't feel pretty silly now, you should.
While I agree in part, the issue with the debit card fee is that the reform doesn't put debit card profits negative. It just lowers them.
So, they are still making money on debit card transactions -- just not as much.
Banks could raise more funds by one of two measures: Encouraging more debit card usage or charging usage.
They took the simple, predatory approach.
Finally, take out the accounting gains from the sale and changes in accounting - they were still 2.7B in the black.
So you know this, that debit cards are profitable without the charge to the consumer. And how do you know this? Encourage debit card usage? Well, they do. What do you expect them to do? Give a freaking toaster every time someone uses their debit card? And what do you mean by charging usage? A per swipe fee? I'm sure that wouldn't have been popular either.
Why do you want to manage their profits to zero? Surely, you know that can't happen for long. Profit is NOT a bad word.
Yes, I do know this. I know this because I used to work for First Data Corporation - the largest debit/credit card and check processing corporation on the planet. I had to be aware of the factors surrounding it.
Encouraging debit card usage could come in a bunch of different ways. My local credit union is offering a program similar to Discover Card where you earn money on purchases.
I'm not opposed to profit. Don't lump me in with the uber-liberal agenda that has been getting a lot of play on this board. There's nothing wrong with profit. I do find issue on trying to earn profit on top of profit when something was free to begin with. Banks get paid on debit card usage from the store, now they are going to get it from the consumer as well?
It's their company - so their free to do it. It's just unnecessary and greedy.
It isn't the bank's responsibility to encourage people to use debit cards. They can if they want, but it's not their responsibility.
As for your credit union, good for them. You just described capitalism which is under severe attack by many of the OWS people. Competition is a good thing. Go get your debit card at the credit union.
It isn't enough to say the bank gets paid by the retailer, it's how much they get paid. The Democrats cut that in half and capped it. If they are making profits on top of profits, then why doesn't it show up on their bottom line?
Actually, it is the bank's job to encourage debit card usage if they wish to pursue profits. Every time you swipe your card, a percentage of the swipe goes to the bank. The issue they have is that this percentage is now capped.
Since debit card usage is a percentage cost to the banks (X) and a percentage cost to the store (Y) - but Y > X, it is business logic to encourage more usage. So, reducing the profit equation to a ridiculously oversimplified equation is: PROFIT = $(X- Y) Where $ represents the number of dollars run through. It doesn't matter the number of times, because the percentages are still the same.
What their new profit system would be: PROFIT = $(X-Y) + 5# Where # is the number of debit card users who swiped their cards.
The bank is now earning money coming and going on a single transaction.
Finally, it does show up on their bottom line --- banks are currently more profitable than ever.
Well, you are wrong on that. Most of BofA's profits were from accounting changes and from selling assets. One time things.
Are you trying to say you are smarter than all of BofA? I"m not doubting your intelligence....but come on....
Yes, most of BofAs profits were from these one time transactions. They were still positive over 2.5 Billion once you account for this.
2.5B in Q3. Not for the year, but in Q3.
It is important to understand this -- 2.5B in straight, out and out, take home to papa profits. Not revenue. After tax profits. In a quarter.
It's hard for anyone to feel sympathy for a bank that posts a quarterly profit of 2.5B after being bailed out and screwing over the taxpayer.
I'm not saying they aren't entitled to make 2.5B or more... I'm saying it becomes a little ticky-tack to put a $5 fee on debit card transactions when you're making that type of profit.
Additionally, the reason BofA is struggling is the bad loans they were making. The ones we helped bail them out of.
You have to put the 2.5 B in perspective of the size of the bank. Those are less than average profits for a bank that size. If they were a small bank, then yes, that would be outrageous. But they are huge, and those profits are not excessive at all. Get a grip and put things into perspective.
There is no perspective to put it into.
Who cares if the profits are average or above average - except those in the gambling game?
Was there enough money to sustain operations? Was there enough money to pay out dividends/bonuses? Was there enough money to expand?
The answer is a resounding YES. It's the growth mentality that drives your thoughts and the problem with that mentality is that there is no way to actually sustain it indefinitely. You'll reach this problem eventually and then the only way to increase profitability is gouge your customers and reduce expenses in the way of customer service and employee load. It's the nature of the beast.
I have no problem with making money - but to continue to believe it's an infinite thing and that we can grow more every year indefinitely is foolish.
Geez, and then someone else will go into business and take the customers away by better providing what the customer wants. That's called capitalism.
Geez, I know what capitalism is.
I want to know how someone will come in and provide better service than BoA because their profits were below average for the amount of assets they hold? They won't, but it's a really cool idea.
If you're referring to sustainable growth - incorrect. There is no way to sustain growth. It's impossible. You can shift where the market is, but it can only grow so far. That's just a law of limited resources.
Ignoring this simple mathematical principle is detrimental to the health of the planet, the economy and our individuality. Indefinite growth is impossible.
Sure the banks want to offset the fee that the US enforced. But do you really think that fee would destroy the bank? No matter what they will post profits. They can gamble with your checking account and make money from it, then have the nerve to charge you $5 for having a card. Meanwhile they made a whole lot more from what you deposit.
Your comments shows you have no idea how a bank's balance sheet and operating statement works. Your logic is that they shouldn't charge a debit card fee because it wouldn't "destroy the bank" to do so. So, why don't you wake every morning by going outside and burning a ten dollar bill? Surely, that wouldn't destroy you!!.
And what do you mean that ..."No matter what they will post profits."? Wow, where were you when many of them were insolvent because the lost so much money? You cherry pick a profitable year and bitch about them making profits "no matter what".
They made a whole lot more from what you deposited? Again, show me the profits. They lost money for a number of years, and after one time items, this last quarter wasn't so hot either.
You need to understand how financial statements work and what they mean before you claim to know how banks should be run.
jeffery...the moveyourmoneyproject site
find local credit unions, small savings banks etc
yes, move out of the big 4
the 99% needs to take there money out of there bank this will cause the banks to do something or they will crash , think about it
the 99% needs to take there money out of there bank this will cause the banks to do something or they will crash , think about it
send to people unaware of news,etc
send to people who dont watch or read the news
big 4 criminal banks
chase, wells-fargo, bank of america, and thuggish citibank
you, the individual, have more power than you know
wake up
send this to people who dont watch the news, etc
Bank of America....charging you for the privilege of letting them make money off your money lol and that's after you already bailed them out lol
trolls are chickens
: ) spread it
I chose this story to tell people to spread around in america for very specific reasons, it would bother most "average" americans a great deal
spread it around : )
I chose this story to tell people to spread around in america for very specific reasons, it would bother most "average" americans a great deal
I chose this story to tell people to spread around in america for very specific reasons, it would bother most "average" americans a great deal - bank gets bailed out, then ups fees on cusotmers etc
its not the $5 fee, personally, thats the problem...its the political influence and massive criminal actions the big 4 banks are involved in, which would be too much to detail, magpie
big 4 in us- citibank, chase, wells fargo, and bank of america
so this is at least a start in hitting them back...moving money out of them......
I surmise that Bank of America is applying these $5 debit charges since they know they are going down because of the recent law suits alleging fraud. It's their last attempt to squeeze what they can out of the masses. Their day is looming and they know it!
: ) spread it everywhere
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trolls are frightened little slaves : )
Bank of America....charging you for the privilege of letting them make money off your money lol and that's after you already bailed them out lol
spread this story to everyone you know who isnt following the news...they will be pissed and get a taste for what we're fighting for
trolls lick the boots of their masters in the 1%
get some pride, trolls
trolls = shills of the 1%
you will lose, trolls
Bank of America....charging you for the privilege of letting them make money off your money lol
trolls = cowards : )
I am telling you, this story will enrage "ordinary" Americans
bump : )
Bank of America was bailed out by the 53% of us that pay federal income taxes. Not the 99%. And I don't really mind, as they have paid back 100% of the money AND profit of $190M to boot. Check your facts before whining about a bailout bank. http://www.foxbusiness.com/story/markets/industries/finance/bofa-repays-tarp/