Forum Post: Shocker: Big Banks don't care that much if you leave
Posted 13 years ago on Oct. 18, 2011, 11:45 a.m. EST by happybanker
(766)
This content is user submitted and not an official statement
Amazes me that so many smart people don't get it. Low balance retail accounts aren't where the big profits are. They have openly said that they are focused on Commercial Banking. Do you think they are so dumb that they never thought hitting you with fees might cause you to leave?? Fact is, they don't care that much.
They are afraid that you might do SOME THINGS, but I have yet to see anyone suggest it here.
Here's a good post on the actual effect of bank withdrawals by someone who knows what they're talking about:
http://pragcap.com/could-o-w-s-create-a-run-on-the-tbtf-banks
Great post!
Smart person, indeed Sir.
They will probably be more afraid if they don't have any more influence in our congress. That's what we will need to do.
http://occupywallst.org/forum/our-1st-demand-needs-to-be/
People should still transfer their accounts for both political reasons and not supporting them.
I agree with the poster that retail checking accounts might not be the center of the banks' profits.
It's about principles, not necessarily slitting Citibank's neck. I don't care if moving my money to a Credit Union from a big bank doesn't hurt the Big Guy. I just feel like a better person having stood up by my principles.
depositors money is a liability on the bank's balance sheet.
it's also the worst form of liability - no lock in and no volume.
Ding Ding Ding. We have another banker in the crowd!
I'd imagine they'd be afraid people would pay off their credit cards (or go bankrupt?) thus depriving them of all that income
some local smaller banks are more socially conscious where they invest the money that is deposited to them, notice how none of these people mention that. they are shills for the oppressive system
You wouldn't have clue how banks manage their portfolio, you Bozo. Go back to the porn site you came from.
methinks some of the "bankers" here protesteth too much
move your money out of the big banks...they are criminal enterprises
they will use every appeal to fear to keep thepopulace down...but it is they who are afraid now
Bear in mind this food chain when targeting: OWS/unions -> Buy-side firms (asset management companies managing pension funds etc.) -> Sell-side firms (quasi-investment banks such as Goldman Sachs, Morgan-Stanley) -> Stock Exchanges. OWS/unions -> voter registration blocs -> politicians -> regulators -> wall street companies. Divestiture effort against South Africa eventually freed it from apartheid but the motivation came from financially and politically connected people so do not kill the devil's ambassador because the devil may want to DEAL when there is enough pain.
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At least some people get it.
They want you to get the fuck out with your measly account, it's costing them money to keep it open now that they can't make obscene profit every time you swipe your card.
Yep Yep and Yep
BANK AT YOUR LOCAL COMMUNITY BANK OR AT A CREDIT UNION IF YOU DISLIKE THE BIG BANKS. Why are big banks evil exactly? Because they make a lot of money? I like how people who read a couple articles online believe they understand the laws of economics and finance theory enough to have a competent conversation about them.
lol that's why theyve blocked the doors at some banks around the country?
nice try
Want to avoid protests - Yes Care if you close your retail accounts - not as much as you think.
They blocked them , because you people have stormed in there. Not acting like a reg. customer, who stands in line quietly , and waits to talk to the teller to closer your accounts. You act like a mob , that is trying to rob them. Which at this point who would blame them. There have been countless news stories of flash mob robberies.
That's great to know! And they'll get the chance to find out, you idiot. It's called volume ... And it will hurt big banks. I know at least a hundred people who are closing their accounts as we speak and moving to credit unions. For ALL accounts.
Never been in Banking have you? Tell me a little more about that volume and how it generates revenue for a bank. Then I'll tell you about the expenses that volume creates.
Tell me if I'm on the right track. Does it have something to do with loans and debt?
No, sorry. And for the record I am firmly against anything that could disrupt our financial system as a whole. Affecting profits is a different animal.
Rats! I thought I had it!
ok, how about his one. Does it have something to do with people re-paying their debt? What if they have to take a haircut on loan repayments? Re-negotiating mortgages? Does this affect profits?
I don't want a major system disruption either. But I think moving to a small local bank out of a BIG one is a good idea, no? If nothing else to make a statement on principle.
You are thinking big but you need to think small. I'll give you an easy one and maybe the group think tank will kick in. Let's start with online banking. Know why banks love it? Cause it reduces labor costs. Much cheaper for you to transfer money online yourself than it is to pay the teller to transfer for you if you come in. That should be enough to get the snowball rolling!
Yea, I called BOA to close my account or ditch my debit card to avoid the fee and they offered to transfer my checking to "e-banking" which would carry no fees as long as I didn't transact business with a teller.
So, yea, I'm convinced.
I took them up on the offer as I have a loan with them too, and I never use the branch, I simply transfer money within the accounts anyway.
Haha, ^^^ I guess I outed myself as a traitor to the cause there but yea.
Once you pay your loan off, you can transfer to a place you respect, like a local bank or credit union, without having to worry about having that loan called for full payment suddenly.
I like doing business with people I can respect.
Yes, I agree. I did open a checking acct with a smaller bank and I use that for the bulk of my deposits/expenses. I even get interest on my checking deposits with them and it is completely fee free, as long as I don't overdraft.
I work for different vendors and have several income streams so I just send some deposits thru BOA so I can pay them off.
My daughter's doing the same, I'm glad to say. I've just been pestering her to move her money from BoA for years, but it's actually happening now.
Good for you!
Bingo! Read that carefully folks.
So thats it? We all stop online banking and flood into the brick and mortar branches? In droves? We stop doing their job for them online? Sounds weird.
What about them taking haircuts on mortgages? I would think this would hurt more.
I can see a couple more plausible scenarios for how OWS could hurt the banks. Closing bank accounts was completely laughable though. Like crime, it's a good thing there aren't many smart ones in the bunch.
How would you close a bank?
Honestly? I don't hate them like you guys do, why would I contribute?
Who do you blame for this financial crisis?
People that bought houses more than they could afford. Without a safety net for unemployment or illness. I agree that money was too easy to get for a few years, but I don't blame banks for facilitating the growth. They just transferred the money. Lots of the now struggling went through years of prosperity when their starter home gained 50% in value in 5 years. Then they bought too much and it imploded. I guess if I had to pick a true failure that could have been viewed as a root cause, I'd blame NAFTA for facilitating ease of our core manufacturing movement into low cost countries, but again; people choose to buy Chinese goods at Walmart. They ultimately brought this on themselves. Now the time for voting with your wallet has passed. The occupiers don't have the buying power to matter. And without a real focus, or leaders the middle class will not join. They have the power to vote with wallets. The occupiers do not.
I would agree that Americans are stupid consumers. I think they over spent and over borrowed but they are slowly waking up. Problem issue, they are in a pit too deep to pull themselves out of. If we ignore that were in for some real economic hurt.
So what's the answer? Is it really attacking the big banks? How will that save us from ourselves? And why do occupiers hate them so much?
I think people feel like banks got a bailout when they made poor choices but the consumers who's tax dollars paid said bailouts got nothing. You're right that it would not fix the root problem though. I don't know how to fix stupid consumerism.
I think we need smaller government that has an action plan. The plan should consist of immediate tax incentives to bring manufacturing back stateside. We won the great wars by one strength, and one alone. We were manufacturings juggernaut. Bring manufacturing home and you've insured the middle class has options. This plan would take 10 years, and should be phased in, such to not shock international emerging markets (we could not afford to piss China off today). This is similar to how we are slowly demanding more fuel efficient cars over 20 years. At the same time we are ensuring our middle class, we should divert significant monies to R&D in material sciences, and health care. This would serve two purposes: 1. Ensure real jobs for our scientists in country, and a career track for those inclined. 2. Solve our futures biggest problems of how to build stuff with renewable materials, and cost effective treatment for our expanding population. And a wholesale reboot at domestic intellectual property process and enforcement (patent trolls stifle innovation stateside, while China just builds and sells "iFone" and gets away with it).
The other problems, the FED, SEC, Brittney Spears. I think they will sort themselves out on their own. Or just hire a private entity to manage them, and publish a balanced scorecard a la no child left behind. Took us 10 years to find problem w that, but it did improve schools radically the first 7.
I would support that plan. Especially smaller government
It's soooo completely misguided. Here are some facts:
You cannot fix broken consumerism until people have individual responsibility for their actions. The depression era folks held money in mattresses as they didn't trust the institutions. They took responsibility for their money and ended reliance on others. This generation has forgotten what that means. Giving the disenchanted a stage to whine on about these topics is an embarrassment to this awesome country. This is not Egypt, this is no Arab Spring.
You make interesting arguments that I don't disagree with. But, you shouldn't spew 'facts' without references.
Good points. I will admit you are far more knowledgeable on the topic than I am. Curious though, do you think That anything in our society needs changing? Are you happy with our government? Not trying to entice here, just wondering your views on other areas.
http://www.heritage.org/research/reports/2009/05/the-rich-pay-more-taxes-top-20-percent-pay-record-share-of-income-taxes
http://www.sigtarp.gov/reports/audit/2011/Exiting_TARP_Repayments_by_the_Largest_Financial_Institutions.pdf
You can do a google search by bank for their employment numbers. Or reference Lehman layoffs to fact check that one.
Smart person award of the day.
What things?
Not sure I'd be comfy talking about that.
Come on man. Don't hold out on us.
Pretty fine line there. I was kinda hoping to see it suggested but haven't so far.
Do you want me to beg?
Two ways to affect profits. Top line (income) or expenses. Think about it.
Well besides taking all of our money out I'm not sure how to affect their top line. And this will not do much as the majority of us have little in there anyway. So I'm assuming you're talking about increasing expenses but what did you have in mind?
Then why did you even bother posting this? You're just a "happybanker" playing games, right?
Liberals aren't very smart.
The thought of people thinking that withdrawing their $50 checking accounts is going to bring down the banks makes me laugh
"ArrestAllCEOS" has been unmasked as a TROLL ages ago.