Let's Talk About Banks Baby...........

And How They Stick It To You And Me.

Well many of you know that I used to work for a major bank but that all ended last Friday. While working for the bank I didn't have the freedom to talk about the industry's vile practices, but now I can, ha, ha, ha.
Freedom!

Below is an article that deals with overdraft fees.

http://finance.yahoo.com/news/nine-u-banks-said-examined-040200096.html

The stuff in red is mine.

Nine major banks overdraft policies are under review by the Consumer Financial Protection Bureau to see if the laws that were enacted two years ago went far enough to protect consumers from unfair business practices.

Now read this paragraph carefully: While tighter rules could help U.S. consumers, they also could threaten a major revenue stream (poor babies) for banks already struggling to replace income pinched by new regulations including a cap on debit-card "swipe" fees. (Why don't they try and make money the old fashion way and earn it!) 

Last year bank customers paid $31.6 billion in overdraft fees, down from $33.1 billion in 2010, according to Moebs Services, a Lake Bluff, Illinois-based research firm. About 15 million Americans overdraw their accounts 10 or more times a year, the firm said. I hate the way this paragraph tries to defend the banks, it's like forgiving uncle Charlie for getting drunk and smashing your car just because he is an alcoholic. He still smashed the car, just like the banks are smashing the little guys with all of their stinking fees! Bank CEOs are drunk on fees because it fuels the profits that justify their ridiculous salaries.

"Smither's, release the fees."

Some of the overdraft fees that are being charged are as high as $36 each and even though you are charged a fee there is no guarantee that the item will be paid by your bank. Now that is just not fair! Well maybe I am being too hard on the poor banks. Maybe we should look at the overdraft fees as dues to an exclusive club. A club that sends it's CEOs on paid field trips (Like the Super Bowl, huh 24/7?) and showers them with lavish gifts like stock options and cash bonuses. Now I don't have a problem with people earning a high salary. I do have a problem when bonuses are being paid on profits, when 25-40% of the company's earnings are generated by fees and not from good sound business practices.

Here is another good line. "The banks are dealing with significant trust and image issues ( I wonder why after all the things that have happened since 2008), so they're trying to be seen as a partner," Wolfe said in an interview.

If the banking industry wants us to trust them again then they need to give us a reason to trust them and stop acting like pirates.

Leon, For fair and honest banking

Images: Yahoo Images