Citi Follows Bank Of America In Instituting Debit Card Fee, $1.9 Trillion In Deposits At Risk
When we reported that Bank of America will be the first bank to institute debit card fees we made the following less than insightful observation: "The problem is that the bulk of depositor clients will simply walk away from Bank of America (which had $1,038 billion in deposits as of June 30), and any other institutions that piggy back on this, and from a game theory perspective, everyone has to do it, or nobody will do it." Well, Citigroup, which had no other choice, has just decided to follow in BofA's footsteps, which i) proves there is indeed a collusive move of desperation by the bank cartel, which in a normal country would see at least a statement from Eric Rip Van Holder, and ii) our thesis about America's impatience with petty theft - they are more than ok with grand scale larson such as that by the Fed via shadow inflation and currency devaluation, but when it comes to paying up an additional $5/month, well, just look at Netflix, which instituted a $6/month price hike two months ago... and is now fighting for survival. As for the exemption requirements, they will likely be the same as Bank of Countrywide Lynch's: either have a mortgage with the TBTF behemoth, or have $20k in a deposit account - both which will likely not be much of a help to 90%+ of the bank clients. The biggest problem is that suddenly at risk are $1.9 trillion in deposits - $1 trillion at BofA, $866 billion at Citi. While the financial crisis did little to dent the banks' deposit buffer, it will be highly ironic if it is an act of the banks themselves that begins the great bank run that resets it all...
From the LA Times:
Another day, another new bank fee.
As the uproar swelled over Bank of America Corp.'s planned $5 monthly charge for debit card use, megabank rival Citigroup Inc. was notifying many Citibank customers that they soon would have to start paying for their checking accounts unless they maintained significantly higher balances.
Letters are going out across the country alerting Citi customers of account changes, said the bank's retail banking chief, Stephen Troutner. In many cases, that means customers will have to maintain fatter balances to avoid fees, although Troutner said a basic account option makes dodging charges easier.
Higher fees are the new reality in retail banking, where regulations adopted in the aftermath of the bank bailouts have reduced revenue from several controversial fees by billions of dollars. At the same time, banks have seen their lending income decline due to the sluggish economy and low interest rates.
...
We conducted extensive surveys with our customers, and no one wanted to pay to use debit cards," Troutner said.
One day after announcing the new debit card fee, Bank of America was inundated with visits, calls and emails from customers.
"We are doing our best to explain the impacts, the value and convenience the debit card offers and how to avoid the fee if necessary," spokeswoman Anne Pace said.
Short of taking out a BofA mortgage or depositing $20,000 with the Charlotte, N.C.-based bank, the way to avoid the fee is to avoid making purchases with debit cards and using them only for ATM transactions, which remain free.
And there you have it: the idiocy that is Bernanke's plan to invert the 2s10s is about to succeed in achieving what HuffPo's failed attempt to get Americans to move their money from TBTFs to community banks tried so hard to do for months.
To keep track of just how suicidal this act will be for the banks, keep track of the weekly M2 numbers which show the non-seasonally adjusted metrics for various checking and debit account categories. We are confident the line chart will start at the top left and go to the bottom right.
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Monkey see, monkey do. Simians, bitchez!
This will motivate very few Americans to get off the couch, put down the remote and cheese burger and do anything about this.
Until the food supply is threatened the banks will be able to do anything they want to the American sheeple!
jp morgue won't...there to busy running the food stamp scan....was it utah that received a 5mill. bonus from the fed for signing up the most fools....up like 60% in utah last 3 yrs{+ -}
Fuck Bank of America.
its just five bucks ... no biggy
To a great many people it is a big deal.
If anyone wants to shop for a local bank, let me recommend ....
http://www.bankregdata.com/main.asp
... with the caveat they charge for their data. There is a free hundred page views (see the gray counter in the top left corner) which I think is tracked by IP (so you can shop at home and then at work).
This is my first stop before opening an account. Do invest the time to learn what the various metrics mean.
Lastly, since the page views are limited, print to a digital file (e.g. Microsoft Office Document Image Writer or CutePDF) for future reference.
Happy shopping!
Regards,
Cooter
Before I open my next account I'm going to refresh some of the reseach I did previously on how to use the law to prevent the bank from fractionally lending against the money. You have to open the account in a certain way and sign the deposits in a certain way. Sorry to be so general, I'll find a link later...
YES, it is a big deal to many people ........ it's a meal ! so, while the average person is watching their little pennies & dollars, WALL ST. & big investment banks are rolling in money into the billions & trillions . none of this is right.
This is nothing. In 6 months every bank will be charging new fees and the game will be that one charges half a buck less than the other & things like that. Look what happened when the airlines started charging for baggage...... nothing. People get used to it and airlines have a sale by only charging$20 per bag instead of $25 but you get to pay $3 for curbside check in. And for you old timers, remember when a cup of coffe at a restaurant was free, or a dime. Think about it. How many different "fees" can you come up with that didn't exist 10 years ago which sheeple pay and don't even give a second thought to it. How many different taxes are there on your power bill or phone bill, 4 or 5? If Citi decided to overcharge every one of its 200 million credit card customers by just ten cents that's twenty mill a month they make and who's going to spend the time to complain about ten cents.
Maybe Tyler can get back to us in 90 days to let us know just how many sheeple left the barn. I'm guessing less than 2% will change banks., then get hammered by the new bank. JMHO
I don't think you are correct. The response to baggage fees was massive increases in carry-on luggage and a big surge of people flying Southwest (two, count them, two free bags). At <1% interest, a $5 a month fee has a physicological importance. This could mean a flight to hard cold currency, a strong deflationary phenomenon, and the opening salvo against the current war on cash.
Name 2 airlines that went out of business because they charged for baggage. You can't because it didn't happen.
I can only think of two that haven't gone out of business for one reason or another.
AMR is trying
"To a great many people it is a big deal."
"Its just five bucks ... no biggy"
"This will motivate very few Americans to get off the couch"
All true.
But we ain't goin' nowhere but down 'til a critical mass reacts on Principle.
Down we go...
dumbass, yes it is.....over time they will consistently increase fees. Whatever, have fun giving your fiver to keep the bank solvent. I closed my account yesterday. I already bail them out with my taxes, I wont do it again.....
I'd say short BAC, but you know Fed/Treasury is going to bail them out now that Buffett's money is involved.
Best thing you can do is protest at your local bank of america
http://www.youtube.com/watch?v=7OU_-NeQsGo
and at your local Fed
http://www.youtube.com/watch?v=viRbHSPa-U8
fuck him too....hes on his way out anyways
http://www.youtube.com/watch?v=oDCNFJByXbA&feature=player_embedded
better to take it to the 0.1%'s home.
http://www.youtube.com/watch?v=bDLJqQ6acnI&feature=related
banksters got Alan Grayson kick out of Congress once he spoke the truth:
http://www.youtube.com/watch?v=KRqfEKyizYs&feature=related
democracy controlled.
I was very active in the Tea Party before I left Texas and I donated cash to Alan Grayson. He had balls; a democrat I can belive in. Most of the rest are spineless scumbags (along with a good number of republicans).
Suck it liberals.
Regards,
Cooter
liberals and conservatives need to come together and fight the common enemy.....wall st. in bed with DC resulting in corruption.
Elites don't give two hoots....they donate to BOTH parties.
USMC vets are even getting it....it is about the 99.9%
http://www.youtube.com/watch?v=QPQOU1KNF0U
Of course the Fed is going to bail them out. Otherwise we couldn't afford the Uncle Warren & Barry show.
I remember opening my first checking account in 1980. There was a $3/month fee then, but there were not that many ATMs (and they were free). $3/month in 1980 is about $10 today.
It's the equivalent of taking a leech off your right arm and putting it on your left. It's still living off of you.
What was your interest rate then?
In 1980 you could get a decent rate just holding cash in the bank. I'd NEVER paid a fee for checking even now. Banks used to need deposits to lean out and make business loans, mortgages and such, now uncle sam just feed them.
Your Right $5 is nothing so let them have $500 per month and as long as the interest curve is sub zero let them have a 15% per year surcharge to hold your savings. Have we not got it yet its their GOD given right to survive at our expence.
Bank of Apocalyptic Collapse
Oregon
http://nation.foxnews.com/president-obama/2011/09/29/obama-gives-oregon-5m-bonus-boosting-food-stamp-rolls
Oregon has a scheme to pay mortgages for a year too. . .
smlbizman:
Nyet: Utah, Da: Oregon e.g.: $5MM 'Performance Bonus' and they wonder why they get more of something that they subsidize.
- Ned
Agreed and I'm sure both BAC and C did their homework with studies and testing to determine how far amirkans can be pushed, bent over and pic-pocketed and have rightfully concluded that peeps will do nothing about it.
oligopolist can afford to have others do thier homework
<AdjustsHisCynicHat>Actually, this is a game with BAC stock ... why is BAC the first to announce this? Clearly this would not happen if all banks did not collude to charge the same across the board. Thus, this is dip before TPTB jack BAC stock prices to the fucking moon.</AdjustsHisCynicHat>
If you trade this, you are fucking crazy (I don't know what I am talking about - thus my cynic tags), but the fact that BAC is on the ropes with Countrywide liabilities and so forth screams to me manipulation down ... then up. This is pure stupidity otherwise.
Markets are broke, best of luck!
Regards,
Cooter
Yeah, well Normie, it is the information age. We can receive up to minute stock prices, medical breakthroughs, political upheavals from all around the globe, 'course we'd have to turn off the cartoons first.
You know, uh, American cheese is one of the world's finest cheeses.
That's it! I'm moving my money to the nearest Sperm Bank. I'm not sure whether the Sperm Bank's ATMs are equipped to handle my DEPOSITS...
Credit Unions! Find one near you!
I must've highlighted the wrong word. That should've been Sperm instead of Deposits... or BOTH? ;-)
Mia Culpa, Michelle!
Looney
The least popular topic here at ZH is the Fed. That includes Bernanke, Geithner, Obama, Greenspan and tout Wall Street.
The next most unpopular topic and, not coincidently, is related to the first, the Jews. From the Rothschilds, to Bernard Baruch and Henry Morgenthau, jr. all the way back to Fagin, Shylock and Haym (Jamie) Solomon.
To your point. Sperm Deposits are the third most unpopular topic of discussion at ZH. There is quite a large faction of commentators of the female persuasion here, who make up the ZH chapter of the Junior Anti-Sex League, and Sperm Deposits of any size or shape are anathema to them.
If you are a woman they probably won't hurt you. If you're a man cross the street if you see them coming. If you don't, you might be able to hit the D above high C. /sarc/ :o)
Yup, credit unions all the way.
I went in to BOA today and took out $70,000 cash.
Made them "order it" and waited 2 hours - bullshitters - its in the vault - assholes.
They did EVERYTHING to keep me.
They wanted to just cut a cashier's check, but I said 'NO WAY.' Cash Bitchez!
They told me that I had enough in the bank that I would not be subject to the fee.
I told them I was taking it out on behalf of all the little people that they were (continuing) victimizing.
I am sure that earned me a SAR, rather than a CTR.
I expect a vist from the FBI in 3 weeks.
I am not sure I am going to put it in another bank.
Somehow I like the idea of having $100,000 sitting in my safe at home, rather than the bank.
In this economy cash is king, except now having cash makes you a terrorist - having cash money makes you a terrorist.
Unbelievable.
Cash is OK for Rabbis. Change your affiliation.
right on !
By law they had to report that to DHS/FBI/local and state law enforcement under the PATRIOT Act. It will merit an investigation into you.
They will look at:
1. phone records
2. business and financial records
3. political contribution history
4. memberships in any suspicious organizations
5. marital status
6. social circle
7. web history (probably just a URL review pulled from your ISP)
Most likely you're a boring non-threat. They'll quickly file your cash withdrawal away for future reference, but otherwise do nothing. The whole process should only take 2 hours.
Correct.....but 5 bucks is just the start. Pretty soon it will be 10, then 15......the camel nose is in the tent. BTW, why don't people use reward credit cards and charge everything? I get back about 800 bucks a year back, which covers most if not all the interest I paid.
"Rewards" from "reward" cards are paid by the merchants you do business with. Banks do not give you 'free money' even though their advertising leads the unsuspecting citizen to think so.
Many small businesses, already suffering in this low margin environment, are barely hanging on and these "reward" cards are part of what eats up the margin. If these cards were used exclusively and for every transaction as you suggest it would still serve to further the income of the banks and erode the margins of your local merchant.
Best idea remains migrate to small community banks and credit unions and reduce as much as possible any "giant monster mega-bank"credit card use. (thanks to Clark Howard for his favorite phrase)
And use cash. Cash. Cash. Hello out there...cash.
For everything except utilities,and CC Pmts.
Never catch me without at least $300.00 in my wallet, ever.
Which brings up a new found discovery on my part.
I got tired of only being able to get $300.00 every 24 hrs from my account.
So I went to the Bank, and asked if there was a reason for only a $300.00 daily 24hr W/D amount/period.
They said it was for my safety, and so the machine would not be sucked dry by a few customers.
I told them I wanted it raised to $1,000.00 per W/D.
Took a bit of doing, but they did it.
A year later(after the '08 meltdown), I tried to W/D a $1k,and it would not give it to me.
Again , I went to the bank, and asked HOW it was changed w/out notification, and why it was changed.
They said the limit had been reset from the Top. Keeping all the cash in house possible, and not having to carry as much in house.
We will move our money to a credit union Monday. No big deal. It's just a few thousand.
excerpting suskind's book here
http://falsepolitics.wordpress.com/
but did Obama really warn main street voters that were desperately seeking someone, anyone to be on their side?
of course not, instead, as any politician would, he used the information to maximize his money operations in order to get elected.
In this sense he betrayed himself, the democrat legacy and worse, he put up for pawn, the legacy of mlk and malcolm x, and hundred’s of years of civil rights wars against elites.
here's 2 interviews of suskind from 'democracy now'........the CITI story is amazing........
dylan ratigan also interviewed suskind which was even better, but the interview is not on utube....
http://www.youtube.com/watch?v=IyRHZ3BYQ_4
http://www.youtube.com/watch?v=YTO_DFN3Yes
awseome ty! if u like to read the book its free at http://library.nu/ search 'suskind'
In this sense, he betrayed not only himself, but also the democrat fdr, lbj legacy and worse, he put up for pawn, the legacy of mlk and malcolm x, and hundreds of years of civil rights wars against feudal minded elites.
here it is....dylan ratigan with ron suskind
http://dailybail.com/home/dylan-ratigan-with-author-ron-suskind-tim-geit...
Everyone should close their account at CITI, BOFA, WELLS and move them to a local credit union. Finances and financial services can be done at the local market....people don't need these mega banks.
Better yet, get the f' out of fractional reserve banks (and credit unions) entirely. Invest in assets with no counterparty risks. That means bail on the fiat currencies of the world! Learn to be free.
Roger that ! And also, a little (not much) OT ...... RON PAUL 2012 MOFOS !
So... people leave BofA and Citi, Government bails out, prints money, dollar drops, dot dot dot nationalized banking industry?
I really don't think that everything will crumble and reset (as much as I would like it to). It seems much more likely that the federal reserve will become the fourth branch of government (fifth after the mainstream media), rely somehow on an international currency.
Here come debit card chips in our arms
http://printbuttonmoney.blogspot.com
The Print Button
Better recheck your Org Chart, the Fed is that big box above the three subordinate branches of government.
I would like to give some anecdotal evidence.
Where I stay there has been banking charges for every transaction longer than I have been alive.
I'm not saying I like it, but people here seem to grin and bear it, because all the banks have these charges.
just a coincidence that they had the same idea at the same time or (more of the same) in your face collusuion?
Considering your name, I am not surprised. Imagine, putting money in the bank and then paying to get it back?!? You sir, truly are a fool.
well, apparently he's not alone in using banks.
I am somewhat amused by all these red votes. I simply stated facts.
It ain't you they're redding.....
Don't take it personal.
Is your bank checking account changing? Do you now have to pay for it, or keep a large balance (at 0% interest!) to waive its new monthly fees?
You have a better option!Switch your checking account to your local, member-owned credit union, where checking is still free!
Plus, we have:yeah, my local credit union went from free to $5/month a while back and I moved my money out to Union Bank which has free checking ... for now.
As far as I can remember there has always been a yearly fee with Australian banks, the real robbers charge like mad bulls, NAB is better in that they pay a 1% commission on monthly purchases, which more than covers the annual charge of twentyfive bucks.
My wife called this about half an hour ago as we were discussing the Bank of Lynching America debit fee.
"Soon, they'll all be doing it"
And you can bet your ass a 5-digit balance will get this BS waived.
How long until we see commercials involving the phrase "like those other guys" for credit unions that don't charge a fee?
just give them a toaster
and get the no-fee debit card
plenty of posts on the BofA thread braggin' about not paying fees on their TBTF bank accounts if they keep 10k in there.
yeah, the banks aren't dumb. . . *shakes head*
actually i see no problem paying small charge for the bank providing useful service to me. The question is of cause price vs usefullness of the service. I usually use my debit card once a month and pay $10 per year for having it
What do you think they've been doing with your deposits since Glass-Steagall went buh-bye, shitwit?
lol that's why i use it once a month to take my salary off of it into cash ;)
You make less than $500 per month? Most debit cards have a $300 or $500 limit per day at ATMs.
money in the mattress time bitchez!
i dont know why anyone would use a bank over a credit union...bofa is loaded with incompetent workers and excessive fees
Bank of America actually has trolls that work there. http://www.youtube.com/watch?v=eWYW0H7-c_w
To think that Bank of America would be the only fucked up bank to hire people to sit in front of their computers and post crap is short sighted.
You idiots still spamming SGT's paranoia?
This has been debunked. Stop looking stupid. It was a lowly teller spamming him from his job at BAC. Yes the IP's cycle throught out the day because that is how their system is setup. It's been uncovered in other youtube videos, he was spamming because SGT was flaming subs on another guys page for being "CIA shills" and other paranoid bullshit.
Yes i agree with some of his videos, but this guy is a moron. Do some research.
To: 'ItsEvolutionBaby', Are you a complete imbecile, or just a deliberate part of the problem? You wrote in regards to me: "This has been debunked. It was a lowly teller spamming him from his job at BAC... etc... this guy is a moron." -- So, more ad hominem attacks from the great 'Evolved' one? lol. The multiple IP addresses spamming SGTreport with hundreds of slurs and hateful comments ALL tracked DIRECTLY back to network space fully owned by Bank of America, as clearly and quantifiably PROVEN with direct links to the American Registry for Internet Numbers, and shown in my video 'ALERT: Which Criminal Bank Hates SGTreport?'. It was 100's of individual comments from opposite sides of the country, which did not originate from a teller at a local branch on a lunch break. It is people like you - libelous cowards hiding behind bogus screen names, who are part of the problem in this country. Guys like you will never ever be part of the solution. 'Evolution?' What a joke.
Retards BAC! The Russians got that business model sorted out already; kompromat.ru - one pays them to get bloggers and the service all the way up to video of the victim with prostitutes in sleazy motel (they can even provide the prostitutes needed).
You still spamming for Bank of America? You should look for another employer I don't think they're in too good of shape. Paychecks might start bouncing.
I watched for a little bit ... but he spent so much time talking about himself instead of ideas of substance I lost interest.
But I am a dork like that.
Regards,
Cooter
Just goto 3:36 in the video above.
TSA definitely employs people to blog the same message again and again and again and post in comments sections to shape public opinion to be favorable to them. Common lines of thought include:
"As soon as a plane blows up you'll be the first one begging for the TSA and blaming the government."
"I'd rather not get blown up in the sky and if I have to deal with a slight inconvenience, so be it."
"You get more radiation flying at altitude than the scanners output."
The comments section of Market Watch is also full of shills for the banks, realtors, etc. They also have admin accounts and ban anyone that calls them out for using multiple accounts and repeating the same nonsense at the behest of their employer.
There are companies that specialist in this sort of thing. Here's a couple of examples:
http://arstechnica.com/tech-policy/news/2011/02/the-ridiculous-plan-to-a...
"The short version: It proposed services to clients like a law firm working with Bank of America and the U.S. Chamber of Commerce that included cyberattacks and misinformation campaigns, phishing emails and fake social networking profiles, pressuring journalists and intimidating the financial donors to clients’ enemies including WikiLeaks, unions and non-profits that opposed the Chamber."
https://secure.wikimedia.org/wikipedia/en/wiki/Cyveillance
"Cyveillance's clients include the pharmaceutical industry and entities within the entertainment industry, particularly music and movie concerns, specifically, the RIAA and MPAA. Cyveillance runs scans which attempt to gain unauthorized access to P2P networks, Web servers, IRC servers, FTP servers, and mail servers, searching for mp3 audio files and movie titles. After running the scan, the site scanned is archived, and the information sold to the RIAA and/or MPAA."
You think Bank of America wouldn't pay a black hat hacker to gain access to Zero Hedge's web servers to pull IP information for some of its users/posters/admins? Think again. The feds, of course, would simply send a FISA letter to Zero Hedge's hosting provider and get full root access/a tap on the comms and nobody would ever know.
When I heard of this fee I couldn't believe it. Why did they do this? How could they not see it will kill their deposits, at least their small retail deposits. Is it simply not worth their time to have cousin BillyBob's $1000 checking and $200 savings account? Why anyone would have a small account with them anyway was beyond me.
Exactly! it is not worth the time and expense to offer bank services to paupers. That is what check cashing establishments and payday loans are for.
agreed. It is five fucking bucks, folks. Get over it. Most likely the people who are bitching the most are the same liars who stated their income to countrywide to buy that too freakin exensive home.
There is plenty to rail on BofA about, but this isnt one of them.
If you cant afford five bucks a month go to a check cashing joint or stand in line for money orders at the 7-11. Pay for your damn services; this aint a communist country (yet.)
Pay for your damn services; this aint a communist country (yet.)
At least not for the general public. Pay your tributes bitchez!!!!
Fuck off, Bank of Lynching America assclown.