BofA chief: We have a 'right to make a profit'

[pauldun170]

(PR Lesson #45 -There are somethings you say and some things you keep to yourself when a microphone is in front of you)

WASHINGTON (CNNMoney) -- Bank of America's CEO defended his bank's new $5 fee on debit cards on Wednesday, saying that customers and shareholders understand the bank has a "right to make a profit."

Bank of America (BAC, Fortune 500) CEO Brian Moynihan defended the move, which the bank announced last week in response to new caps on debit card swipe fees that the banks charge retailers.

Bank of America's announcement of a new debit card fee was followed today by an announcement of new checking account fees by Citibank (C, Fortune 500). These new bank fees have fueled a populist backlash that has coincided with a series of protests against Wall Street banks around the nation.

Moynihan stopped short of criticizing President Obama who earlier this week said to ABC that banks don't have an "inherent right" to a "certain amount of profit."

But BofA's chief did say banks have an inherent right to make a profit in an interview Wednesday with CNBC's Larry Kudlow at the Washington Ideas Forum, sponsored by the Newseum, the Aspen Institute and the Atlantic magazine.

"I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders," Moynihan said.
Bank of America cutting 30,000 jobs

Moynihan said that the bank will talk to its customers, teammates and shareholders and "they'll understand what we're doing -- understand we have a right to make a profit."

Moynihan said the bank had made the fee clear and transparent to its customers and noted the bank had given plenty of advance notice because the fee won't kick in until next year.

But he said the new charge was necessary because the "ability to be profitable" in retail banking has changed. He added that Wall Street reforms in the so-called Dodd-Frank Act will cost his bank "billions."

When Kudlow asked Moynihan if he felt the bank was under attack, Moynihan said "no."

"We have the best bank in the world, we do a great job for our customers," he added.
9 most annoying bank fees

Later, Moynihan was asked about an entirely different issue, whether he supported a proposed tax on millionaires that Senate Democrats proposed today.

He said he'd echo what he hears from his millionaire customers: "Yes, but what for?"

"If the belief is that it puts our fiscal house in order, then they support that," Moynihan said. To top of page


http://money.cnn.com/2011/10/05/news....htm?hpt=hp_t2

[Particle Man]

You want to charge me to access my own money? Screw you, I'll go elsewhere.

[OneSickPsycho]

Originally Posted by Particle Man

You want to charge me to access my own money? Screw you, I'll go elsewhere.

And that's your right... you don't want to use their services, you don't have to... Just as they have the right to charge whatever the fuck they want to use their services...

Interesting article: http://www.pbs.org/newshour/bb/busin...ees_09-30.html

Hey, 'how about the government quit fucking with shit?' is pretty much my feel on the story...

[Particle Man]

Originally Posted by OneSickPsycho

And that's your right... you don't want to use their services, you don't have to... Just as they have the right to charge whatever the fuck they want to use their services...

Interesting article: http://www.pbs.org/newshour/bb/busin...ees_09-30.html

Hey, 'how about the government quit fucking with shit?' is pretty much my feel on the story...

Exactly. Same premise if I'm "offended" by something on TV or the radio... change the channel.

Problem solved.

THAT is freedom.

[OneSickPsycho]

Originally Posted by Particle Man

Exactly. Same premise if I'm "offended" by something on TV or the radio... change the channel.

Problem solved.

THAT is freedom.

Ron Paul 2012 motherfuckers....

[Smittie61984]

Originally Posted by Particle Man

You want to charge me to access my own money? Screw you, I'll go elsewhere.

They're not charging you for access to your money. they are charging you for a service.

[Sixxxxer]

Originally Posted by Smittie61984

They're not charging you for access to your money. they are charging you for a service.

That service being...Holding YOUR Money.

Fuck That shit, My bank charges 2 dollars...and Ive been okay with it for now...but I do have an ING account and may open a USAA one shortly and cut ties with my current bank completely.

[Homeslice]

Originally Posted by Sixxxxer

That service being...Holding YOUR Money.
.

And giving you free checking, free auto-pay, free direct deposit, free ATM card.....

[Smittie61984]

Originally Posted by Sixxxxer

That service being...Holding YOUR Money.

Then why put it in a bank at all? Why not just keep it at your house/apartment/buried in the backyard?

I'm guessing you like the security of your money/wealth being in a bank. Why? If your house burns down and you have all of your money and savings in there then it is gone and nothing left to do except bitch. If the bank burns down or your house burns down then you go to the bank and retrieve your money.

You are also paying for the convienence of not having to run to your bank every day and to get a certain amount of money.

But as stated earlier. If people don't like it then you can get another bank. My bank actually pays my ATM fees back when I use it. I also don't pay monthly and well I don't pay anything ever.

[Particle Man]

Originally Posted by Smittie61984

They're not charging you for access to your money. they are charging you for a service.

these days, you can even find stores that will either not accept cash without going through all sorts of hoops or they have ONE cash only line with everything else being electronic.

Again, they aren't charging me shit - I will continue going elsewhere. If other places follow suit, I'll go back to writing checks. I have no problem with writing a check to myself for cash and going to the bank. Not convenient but I'll still do it. I will laugh my ass off when the banks bitch about the administrative costs of handling checks.

Oh and by the way, they're using my money to make investments off of which they make their money when I make a deposit; basically, I'm allowing the bank to borrow my money. With the "charging for a service" logic, I should be within my rights then, to charge THEM a fee for providing THEM with a service.

Originally Posted by Homeslice

And giving you free checking, free auto-pay, free direct deposit, free ATM card.....

Consider it a continuation of the above logic - that's my service charge for allowing them to use my money.