Entries Tagged as 'Banking'

Keep Wall Street Occupied

A friend of mine put this together; and I think it’s very good advice…

I’ll add a couple points:

  • Mail over 13 oz requires you drop it off in person
  • Mail over 5mm thick is charged a higher postage rate (regardless of weight).
  • I’d discourage you from spending a penny on sending anything to a bank (not just because of the cost, but because of the environmental impact to produce and distribute anything); find your non-recyclable items around your house and use those to send a message — just be careful, some items are prohibited from sending via the US Postal Service — A Customer’s Guide to Mailing.
  • You may want to include in your note to remove your name and address from their mailing list (they already have all that information, they got the mail to you right — so you don’t really have to worry).
  • Don’t do business with banks — especially “big banks”.  Choose a credit union or a local bank for your needs.  If you have credit card services from a “big bank” make sure they are paying you back to use their card (they still make money, but at least you get something), never pay a membership fee or yearly fee for credit cards, and never carry a balance on a credit card at a “big bank”.

Originally posted 2011-10-30 02:00:24.

:( Banks might not have gotten a Get Out Of Jail Free Card afterall :)

It looks like the first major salvo has been fired in potentially forcing the banks to accept liability in the Residential Mortgage Backed Securities (RMBS) fiasco that cause devastating harm to the US economy recently.

The New York Fed, BlackRock, and Pacific Investment Management Company sent letters to Bank of America alleging that its subsidiary, Countrywide, failed to perperly service loans totaling $47 billion.

While the letter itself doesn’t constitute any litigation, it does lay the groundwork for investors filing to recover investments that may have been negligently (mis)handled by banks.

This is a direct result of the “robo-signing” mess that banks have gotten themselves into; since it would be fairly easily established that the banks did not perform due diligence on loans where the documents were not properly reviewed.

I suspect this time it won’t be quite as easy for the banks to pull a rabbit out of the hat by getting the Federal government to provide them with loans — but then again, if you and I don’t make it clear to our elected officials that we’re not interested in another loan to banks, that we expect them to resolve it just like regular Americans have during this economic crisis that banks are largely responsible for.

Originally posted 2010-10-26 02:00:55.

It’s not our fault we went bankrupt…

I wasn’t sure it it was a new daytime sitcom or a hearing when former Lehman CEO Dick Fuld delivered his 1680 work prepared testimony.

Lehman was a strong company that had corrected it’s problems:

In retrospect, there is no question we made some poorly timed business decisions and investments, but we addressed those mistakes and got ourselves back to a strong equity position … There is nothing about this profile that would indicate a bankrupt company.

The market and the public were wrong to lose confidence in Lehman:

Lehman’s demise was caused by uncontrollable market forces and the incorrect perception and accompanying rumors that Lehman did not have sufficient capital to support its investments.

The government was at fault for not banning naked short selling or allowing Lehman to convert to a bank holding company or let it take deposits:

Each of those requests was denied at the time. Tellingly, though, each measure was later implemented in some form for other investment banks during the days and weeks following Lehman’s bankruptcy filing.

Lehman was the victim:

This loss of confidence, although unjustified and irrational, became a self-fulfilling prophecy and culminated in a classic run on the bank starting on September 10, 2008, that then led Lehman to file for bankruptcy four days later, in the early morning hours of September 15.

For more comedy (without my satire — and please don’t think I’m serious about anything I’ve written in this post) see the links below; and don’t laugh too hard.

Dick Fuld
Repo 105
Lehman bankruptcy attorney
New York Fed general counsel

Originally posted 2010-09-02 02:00:11.

Connect for the Cause

I’m a huge fan of credit unions; be they state or federal chartered; and I hate banks (all banks).  There’s a huge difference between what motivates a credit union and what motivates a bank, and dealing with even a bad credit union is generally much more satisfying than dealing with the best bank!

Personally I use credit unions when I can; and soak banks for their “give mes” on credit cards… I never pay a bank a penny further if they don’t pay me — I don’t make money for them, and my credit unions never charge me a penny (seems like a good arrangement to me) .

The quote below is from a web site that’s designed to keep you informed about legislation that might effect the services credit unions can provide to you; below it are two links to (California) organizations that support credit unions — while all of whats on those sites might not be important to you, certainly any of the federal changes proposed will likely effect you.

Support your credit unions in every way you can — and fight back against the greedy banks that feel you as a tax-payer (and a customer) should pay for their mistakes while they continue to pay the executive staff (who made the mistakes) huge bonuses.

Take back America… take it back from the greed that destroys the very foundation of our society!

 


As a credit union supporter, you are aware of the need for grassroots action and mobilization efforts to inform our elected officials about credit union issues. Thank you for your active support, and please visit this network frequently to stay informed about legislative issues that are important to your credit union.

Connect for the Cause

California Credit Union League

Originally posted 2009-11-28 01:00:29.

Volcker’s views being echoed by Obama

Paul Volcker for years has been adamant that banks should not be allowed to use federally insured money to gamble on the market.

Hard to deny that we need to make changes in the way Wall Street and Big Banking does business; remember, we’ve done nothing but bail them out and allow them to make record profits using tax payer money.

I personally believe the right solution is to tax big banking and to make it more profitable for them to break up into smaller (more easily regulated) business units.  This would also make small banks and credit unions much more capable of competing as well as prevent an economic collapse when one or two banks make bad investment decisions.

Originally posted 2010-01-27 01:00:33.

Occupy Wall Street

Occupy Wall Street
Occupy Wall Street
By Adam Zyglis, The Buffalo News

Originally posted 2011-10-10 02:00:28.

Citibank World Dividends Master Card

I got home Friday evening and had an alert from Citibank that a statement was ready on my Citibank World Dividends Master Card account… this is an account they’d converted from their Dividends reward card that had a really nice cash back program to a card that really didn’t have a very good program at all, so I really didn’t use the card much; but I’d done a small charge on it a couple months ago, and then paid it off when the bill was issued.

So, the alert was notifying me that I had a statement ready that would have a zero balance, and would only be showing a posted payment.

The problem was… there wasn’t a PDF of the statement available.  And the same thing had happened to me about eight months previously; so I actually knew exactly what it was.

The bottom line was some programmer at Citi decided (or was instructed to) not produce PDF statements for account with zero balances period… ignoring the fact that federal law requires a credit card company to issue out a statement with a zero balance should there be any transactions in the period the statement covers.

Certainly the supervisor I was transferred understood the requirement that a statement be issued when there was transactions during that period…

But, once again, I was sent over to a on-line technical support agent; who insisted the problem was my browser… Firefox 8; so we tried it in Internet Explorer 9… same thing, no PDF statement… then we tried it in Internet Explorer 8, Internet Explorer 7, and Firefox 5… guess what, still no PDF statement (she of course wouldn’t have it that I’d gone through all of this before — she had to make sure she wasted the maximum amount of my time that she could); then the technical support representative decide that maybe she should actually ask someone about this issue… and –SURPRISE– she was told that there was an issue in the system and in fact PDF statements were not issued out on account that had a zero balance, that they had to be requested to be generated.

While normally I believe in the three strikes you’re out paradigm, for a financial institution as well run as Citibank I made an exception… I decided because they managed to waste 50 minutes of my life today; and another about 90 minutes of my life several months ago on the exact same issue, that they were OUT!

I requested a return to a supervisor and canceled my account.

As always, I wished her the best of luck finding another job when the financial institution she worked for went out of business, and assured her that I would do everything in my power to encourage everyone I knew to dump Citibank.

The only unfortunate thing about cancelling the account was losing the $13.56 in Dividend reward points, but I certainly wasn’t going to keep the card until I had accumulated the $50.00 in reward points necessary to request a check.

I still have a two other Citibank credit cards (one VISA and one Master Card)… and while I may keep those cards for the moment (since Citibank and Bank of America are the only two financial institutions in this country that provide virtual credit card numbers)… but I will guarantee you I’ll make sure as little money as possible is charged through Citibank, and should one of my credit unions add virtual credit cards Citibank will be history for me.


UPDATE:

On Sunday I received an email from Citibank telling me that there was a PDF of my statement available for download.  Guess what — no statement.  I called up the clueless people at Citibank (again) to waste (more) of my time…

I guess maybe they’ll just have to change the spelling of their company to Shittybank.

Originally posted 2011-11-20 02:00:27.

A Pledge of No Privacy

Part of the intent of the Gramm-Leach-Bliley Act (aka the Financial Modernization Act of 1999) and the rules and regulations for federal banking and credit unions was to put into effect requirements on financial institutions1 to safe-guard the personal, confidential, and financial information of their customers2.

On of the main parts of the law was that it required institutions to provide customers with their privacy policy which explained their information sharing and information safeguarding.  However, because the law was heavily effected by lobbying, and even reviewed by large financial institutions before being considered by congress there are cases where institutions aren’t really subject to many limitations on what they can do with your information.

You might find it interesting that every large financial institution I have dealt with since the law was passed (ie Chase, Citi, Bank of America, Barclay, etc) have specifically allowed for an “opt-out” of the sharing for personal information for use both inside and outside the company (effectively limiting the information to be used only as require by law and as necessary for the maintenance of your account).

However, you have to be very careful about smaller institutions.

Credit Unions are in general very customer oriented, and most the time “do the right thing” — particularly when it comes to building a solid, long term customer relationship based on trust and respect.  However, take a look at the “Privacy Pledge” for Gulf Winds Federal Credit Union3 (formerly Monsanto Employees Credit Union) http://www.gogulfwinds.com/page/privacy — WOW — that’s a really nice pledge to no privacy.  In essence what it says is that they’ll use any information they collect on you (both public and non-public) and use it to the full extent allowed by law (I’d guess to profit from) and won’t allow a customer (or consumer) to “opt-out”.

How many ways can you say “non-customer focused”???

The moral of this, don’t assume you’re better off dealing with small “local” financial providers that might seem to have your interests in mind — you might actually end up getting better over all service and respect from a much larger financial provider.

I for one will be re-assessing my financial relationships; and likely terminating a few — and trying to convince congress to stand up to the financial services companies and actually pass a law that protects me.

REFERENCES:

In Brief: The Financial Privacy Requirements of the Gramm-Leach-Bliley Act

NOTES:

1 The Financial Modernization Act of 1999 apply to banks, credit unions, securities firms, and insurance companies as well as a number of other type of companies providing financial services to consumers and is part of a larger framework of federal, state, and local banking laws.

2 The Financial Modernization Act of 1999 privacy requirements apply to customers; which are defined to be consumers (not business) with which the institution has a “long term” relationship (ie holds an account), and does not necessarily cover all consumers who might interact or transact with an institution.

3 You can find the same type of non-privacy policy at a number of smaller financial institutions; Gulf Winds is particularly sad because they refer to it as a “Privacy Pledge” rather than just a “Privacy Policy”.

Originally posted 2010-07-05 02:00:15.

Clarity

Have you seen that Bank of America has become the first financial institution to issue all of it’s card holders a one page statement that explains their rates and fees on their credit card.

The really funny thing is the news media is applauding this like something new and different and patting BofA on the back.

Hell, I can issue a one line statement that will tell card holders from every financial institutions clearly and concisely what their relationship is with their bank…

YOUR BANK WILL SCREW YOU OVER EVERY CHANCE THEY GET.

I’m just not sure what I’d do with the rest of the page.

Honestly, why is the news media treating a lack of “double speak” like something that should be applauded and not treating the rampant abuse almost all financial institutes exercise on a daily basis as something to be put in the fore front?

Admittedly I don’t have much respect for banking institutions (nor do I have much respect of the news media in the United States) — but give me a break, how stupid does the media think the average American is?

Originally posted 2009-12-20 01:00:34.