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Originally Posted by ZenGum
So, while everyone is arguing about five bucks here and there, it seems B of A is positioning to pillage the treasury.
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It is a plan right out of the cigarette industry playbook. When state taxes on cigarettes increased (due to inflation), the cigarette industry would also increase their profit margin significantly. State taxes rose so little that the actual tax (with inflation) was decreasing. But cigarette profit margins eventually exceeded 50%.
To put that into perspective, Wal-Mart's profit margins are closer to 2%.
Now that 'evil' government has required more sensible fees on debit cards, then raising all other banking fees can be blamed on that 'evil' government. Cigarette industry played the exact same game. And most people foolishly thought higher cigarette prices were due to state taxes.
Banking industry has a long history of stifling innovation while reaping massive profits? Productive industries do not increase costs when always innovating. Remember what they teach banking executives in business schools. Only profits are important. The product be damned.
Bank of America is quite profitable in all sectors except one. The one that Ken Lewis spent $billions on without doing any due consideration. His ego was proof that the expense was justified. He bought Countrywide Financial for $4billion. Due to that expense and much more $billions in bad loans, BoA must screw everyone else rather than admit a grossly overpaid executive is the reason for this next decade of losses.
Lewis did exactly what is taught in the business schools and advocated on Wall Street. Since so many banks are so ill managed, fees must be charged to you. As Obama said before he took office, we will be paying for the next decade what was openly advocated on Wall Street and in Washington in the 2000s. I believe we call that Mission Accomplished.