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re: Why do consumers choose to bank with BAC?
Posted on 9/30/11 at 10:09 am to LSURussian
Posted on 9/30/11 at 10:09 am to LSURussian
Apparently some banks learned from failed companies like Greentree Acceptance which demonstrated the risks of lending/securitizing loans to subprime borrowers, some banks apparently thought they were above the fray or were simply greedy. Yeah, CRA/GSE's, poli's, and a lot of other things come into play, but no one put a gun to the TBTF banks to ramp up shitey loan production to bad borrowers to the extent they chose to do, and acquire even more shitey lending companies that were core subprime lenders.
This and other history was out there long before the recent debacle of historical proportions.
LINK
Supposedly bright people can f up with the best of them, knowingly or unknowingly.
This and other history was out there long before the recent debacle of historical proportions.
LINK
quote:
A fateful step: acquisition of Green Tree On April 6, 1998, Conseco announced the acquisition of Green Tree Financial Corp., a Minnesota mobile home lender, for $6 billion. At the time, Hilbert called Green Tree the best acquisition ever in financial services and predicted it would turn his company into an "absolute consumer-marketing juggernaut." The vision was simple -- become a one-stop financial shop by offering insurance and investment products to Green Tree's borrowers. But Wall Street analysts and many Conseco stockholders felt Hilbert vastly overpaid for Green Tree. Conseco's stock fell 15 percent the day the companies announced the deal and went into a long and steady decline through all of 1999 and into 2000. Through most of that period Hilbert remained confident and continued to invest his own money into the company, even borrowing money to buy more Conseco stock. On March 31, 2000, Conseco announced it had hired Lehman Brothers to find a buyer for Green Tree, which had been renamed Conseco Finance. Analysts predicted the company would lose billions on any divestiture and Conseco's stock value continued to slide
Supposedly bright people can f up with the best of them, knowingly or unknowingly.
0
Posted on 9/30/11 at 10:57 am to tims0912367
quote:
As for BAC in particular, my only encounter with them in my life is when they took over Countrywide and converted my high yield online savings account to one of their low yield shite offerings, complete with a $10 monthly fee regardless of how much money you kept in it. I withdrew all my money and canceled my account the day I got the letter from BAC, and I never paid anything due to their "generous" one month grace period. Assclowns, thought I.
Apparently once Assclowns, always Assclowns.
The list of things banks do to run people off is voluminous. But the real irony in this situation is they prefer to run off small customers that did not generate fee income through overdrafts, minimum balance deficits, etc, but yet believed it was intelligent to lend large sums of money to people that had no money/income and shaky credit and they would make great returns on these "customers". Even a person with limited understanding of finance could determine this would not end well. How much money did Ken Lewis get when pushed out after making yet another bad acquisition of what was CWB? Why is it that bad CEO's and other execs continue to receive huge exit payouts for impairing or killing companies?
Posted on 10/1/11 at 12:18 am to tirebiter
Dodd-Frank has made it unprofitable for banks to allow debit card point of sale transactions. They are merely making up for the lost revenue from those transactions. You did not really think that the law would give you something for less money than you were already willing to pay for it? All banks are instituting new fees to pay for the additional costs that Dodd-Frank has imposed on them. Many community banks will not be able to absorb the costs without imposing fees so large that the fees will cost them customers. You may not have a choice very much longer to not bank with one of the larger regional or national banks that are able to spread the costs of Dodd-Frank over more customers.
Posted on 10/1/11 at 10:48 pm to Janky
quote:
I just shite canned Regions cause they said they were going to start charging me.
You should can your politicians since they are the reason for this BS.
Posted on 10/2/11 at 11:11 am to Poodlebrain
quote:
You did not really think that the law would give you something for less money than you were already willing to pay for it? All banks are instituting new fees to pay for the additional costs that Dodd-Frank has imposed on them. Many community banks will not be able to absorb the costs without imposing fees so large that the fees will cost them customers.
This isn't about me, I haven't paid direct bank fees in forever, it is about why people choose to bank with an institution that's operating mantra is to offer consumers the least best products for high cost, directly and indirectly. It is what it is, and no, I am very well aware of Dodd-Frank bill and its implications as I didn't fall off the turnip truck yesterday.
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