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Big banks makes their money in a lot of other ways than just consumer deposits. But yes, consumer bank accounts are materially significant for big banks. And, yes, if everyone ran on the banks and withdrew all of their money, it would hurt them.
But this is highly unlikely to happen. Don't forget that there is a reason why big banks exist and why people use them in the first place; they have some significant competitive advantages over small banks. They are likely to be able to continue to make competitive offerings to enough consumers and businesses to ensure that they retain a good customer base. Most people ultimately reason with their pocketbooks. It is also very difficult to align incentives and actions of a sufficient number of people to make a meaningful impact on a well-diversified corporate giant like BofA. Finally, consider the irony that if a boycott was ever "successful" to the point where one of these huge banks flopped over and failed as a result, it would actually have a profoundly negative impact on the economy.
People have also been talking about boycotting the Wal-Marts of the world for years, too, and they do not appear to be in any risk of going out of business anytime soon.
let 'em flop!
how long can they use the threat of "bringing down the economy" to keep rewarding bad behavior? the FDIC is insolvent anyway so what difference would it really make?
i bet people would be boycotting walmart if they had asked for a big fat bailout.
My big Banking Experience occurred when our 19 branch local Bank was swallowed 12 years ago... it's been down hill ever since.
At times, the statement of fees and charges is reissued several times a year.
The community bank actually approved a Credit Card for my 16 year old brother... we all had jobs and regular pay checks. The Branch Manager told him he was going out on a limb should my brother decide not to pay because there was nothing the Bank could do... actually it was a Savings and Loan. Talk about a personal Banker... we were loyal and brought in lots of new accounts...
Today, I was at the door exactly at closing with business deposits... there were still customers in the Branch... I was told to come back Monday
Even big Bank of America would open the doors an hour or two when I worked for a car Dealership to accept a large cash deposit... all it took was a call to the Branch President on his direct line.
After reading posts at City-Data I decided to investigate local Credit Unions and so far I like what I've found... better hours... 30 times more interest on checking than a Big Bank was paying... 3% vs. 1/10 of one percent.
I really don't think banks care of you close an account... at least they don't act like it.
I had a notice from Chase when they took over Washington Mutual that my account opened 3 months before was tagged dormant I tried to make and appointment and was told to just come in... when I did, no one was available... I mean the tellers couldn't help and all the floor staff was in a meeting...
Chase made my Credit Union decision easy... the irony is I've recently had several calls from my "Personal banker" and I closed my account with them 6 months ago.
In all fairness... B of A has been OK... when a problem arises... I just tell them they can verify this account goes back to 1948
Actually, it's a smart idea for a number of reasons. The service component is far better at a community bank, the decision making on a loan app is better, etc. etc.
Case in point? About ten years ago, I had been waiting on a client check that was in the low six figures. The client had been stringing me along, and payroll was coming up.
The check arrived and I immediately headed for the bank a few blocks away, one of the country's largest. My business account had been there for several years out of sheer inertia, due to the fact that my now-deceased business partner had done his personal banking there.
Unfortunately, in my haste, I had not gone to the bathroom before leaving. So, I'm standing in the lunchtime rush, tapping my feet, and thinking, "Man, I gotta GO."
So when I got to the front of the line, the teller stamps my six-figure deposit slip and hands it back to me. I ask her, "Can I use your restroom?"
To that, I got the following reply: "Sir, we don't have public restrooms here."
Now, think about that for a second. I just put 140K in their bank, and they can't let me use their bathroom. So I found an elevator, went up to the next floor and did my business.
The next day? I came back in, and closed all two of my three business accounts, only leaving the third open long enough for my outstanding checks to clear. The bank officer never asked me why I was doing it, either. He just filled out the paperwork. I took my money to a community bank immediately afterwards.
I never looked back. The service is way better, the rates are typically better, and there's much higher flexibility in how they structure your business. There's just no comparison between the two.
So, wait, you made your entire banking decision based on the lack of public restrooms? Okay then...
I've only done business with a local credit union. Have done so for over 30 years. I am very happy with their customer service and low fees. Why would anyone do business with one of the Big Banks?
how long can they use the threat of "bringing down the economy" to keep rewarding bad behavior? the FDIC is insolvent anyway so what difference would it really make?
i bet people would be boycotting walmart if they had asked for a big fat bailout.
We already bailout Wal-Mart when lots of their employees have to go on food stamps and/or are on Medicaid.
Wal-Mart can afford to pay these people more and provide affordable health insurance, they just choose not to.
This thread is hillarious. Kind of like the scenario if everyone stopped buying gas for a certain time oil companies would listen or fail. Here in GA many folks that bank with the smaller guys have regretted it because those banks don't exist anymore, expect more of this. Expect to find in the future only a small amount of community banks and CU's, regional and national banks are where the money is at. Never had issue with the big guys and have always used them; I have always followed their rules and they have in turn treated me right. Money talks.
This thread is hillarious. Kind of like the scenario if everyone stopped buying gas for a certain time oil companies would listen or fail. Here in GA many folks that bank with the smaller guys have regretted it because those banks don't exist anymore, expect more of this. Expect to find in the future only a small amount of community banks and CU's, regional and national banks are where the money is at. Never had issue with the big guys and have always used them; I have always followed their rules and they have in turn treated me right. Money talks.
All well and good for you BUT how would they treat you if the chips were down? Not well I'd bet...........
Been there, done that. Honesty and integrity are always treated well.
Chase had my mortgage for 10 years and when it came time to refinance they treated me like dirt with rates 3% higher than my credit union offered.
I didn't hestitate to make the move. I was paying extra principal for 10 years and never had a late payment or issue with them. I would have thought they'd want to keep customers like me but nope, refi rates were not negotiable with them so I left.
This thread is hillarious. Kind of like the scenario if everyone stopped buying gas for a certain time oil companies would listen or fail. Here in GA many folks that bank with the smaller guys have regretted it because those banks don't exist anymore, expect more of this. Expect to find in the future only a small amount of community banks and CU's, regional and national banks are where the money is at. Never had issue with the big guys and have always used them; I have always followed their rules and they have in turn treated me right. Money talks.
Well... they set-up unrealistic expectations to be kind.
What is the point of endless customer surveys and advertising stating they want to be my "Personal" Banker when you can't even reach one or you are making a large business cash deposit on a short banking week and you're walking in the door to find the employee who you thought was going to open the door... locks it instead?
Are you saying the guys in GA with smaller Banks lost all or part of their deposits because it was with small banks that no longer exist?
As to rules... it's one thing when you open an account and are given the rules... it's another thing when the rules are modified several times a year at one bank and remain the same at another... I questioned why I had an account fee one month and the Bank VP started to explain it and couldn't... someone in the system had coded my account to a stand-alone instead of linking it with my other accounts...
"Investment Services" is another area where they really prey on elderly depositors... there have been so many different people at the Investment Services desk that it makes my head-spin... and the ones that leave the branch are never to be heard from again and the bank will not tell you where they have been transferred.
The big banks were not always big and I'm certain start-ups will continue to come along...
Whenever the rules are modified... you can bet it's only for the benefit of the institution... with extremely limited exceptions...
Last edited by Ultrarunner; 01-03-2010 at 11:09 AM..
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I tried to make and appointment and was told to just come in... when I did, no one was available... I mean the tellers couldn't help and all the floor staff was in a meeting...
