by Karl Denninger
Have you had it with the scams, frauds, "mark to myth" and lies?
Tired of this sort of garbage - being punished for being responsible?
You may believe that your exemplary behavior shields you from unexpected credit card fees. Sadly, that is no longer the case.
You can stop it.
All 330,000,000 of you.
Go withdraw all your money and business from the following institutions:
- Bank of America
Place your business with a local community bank or credit union in their place, and tell the above four institutions to "piss off."
I've resisted doing this, but the idea that banks are now going to try to penalize those who do not carry balances or pay late fees is the last straw.
This is a call for a boycott.
A call to break these institutions by destroying their deposit base and "net interest margin", one consumer at a time, as a protest against the outrageous actions these firms have taken in terms of risk and their shifting of the costs of that risk, which should have resulted in their failure and closure by The FDIC and OCC, onto the backs of their customers via outrageous fees, interest rates and costs, along with the direct subsidy being paid by all taxpayers generally.
Are not 30% credit card interest rates enough, while these four banks all can and do borrow at near-zero from The Fed and have issued debt with an FDIC guarantee (that is, funded by you)?
If that is not enough to dissuade you, how about Wells Fargo holding an unknown amount of Wachovia "off-balance sheet assets" at god-knows-what in terms of valuations - and justification for same - while cutting back HELOC lines and credit cards?
If not that, how about the practice of large banks re-ordering transactions to generate the maximum amount in overdraft fees, with the brunt of these fees and costs being born by those least able to afford it - the working class person? Yes, I know, the banks, in response to "outrage" on Capitol Hill, recently have "agreed" to reduce the maximum number of overdraft fees they will charge, but what they didn't (voluntarily) agree to do is stop that practice entirely. Oh, many will also allow you to overdraw your account at an ATM or debit terminal, and some will even display a "balance" at the ATM that includes uncleared funds in a puerile attempt to encourage you to do so. That latter practice, by the way, has drawn pending legislation - a few years late, of course, and with no clawback of the ill-gotten gains (tens of billions of dollars) that have been stolen, er, "earned" over the last few years.
There is no law that says you must patronize firms that engage in practices that you find outrageous or abusive. Indeed, it is your right and duty as an American to withdraw your consent to such practices by telling institutions such as this to go piss up a rope.
It is also your right to band together with others and persuade them to do so as well.
This is a call for all of America to do exactly that.
The "large banking industry" has effectively captured the regulatory and legislative apparatus of The United States to do their bidding, even when they screw up, instead of those costs being imposed on their shareholders and bondholders as it should be.
You have no duty to support or tolerate this, and indeed, if you ever want to see it change, you must stop providing these firms with your dollars - your deposits - and your loan business.
Bank of America
Tell them to go to hell and pull your business, whether it be small or large, and take that business to your local community bank or credit union.
Not only will you send a message, you'll reward those firms that provide you with quality service and a reasonable cost structure, instead of those who appear to use every opportunity to nickel and dime you to death.
These institutions, like all businesses, rely on customers in order to survive.
Deny them that business and these practices will change, or they will go out of business - as they should.
The only thing I can add to this is that if you find yourself unable to close your accounts with these banks, then make sure your balance is no more than $10 at any time. Use the ATM machines from different banks to withdraw your cash so that they can receive the ATM fee instead of these four banks.
After Wachovia illegally, unlawfully, and with full intent of commiting theft cleaned out my account in August 2008, I have encouraged everyone I know to stop banking with these thieves... and yes, that's what they are... THIEVES.
As far as I'm concerned, it's way past due to revive the traditional American public punishment once used against thieves to deter blatant and immoral theft...
TAR & FEATHERS