A new citizen action site called F the Banks (the F stands for foreclose, I’m told) has kicked off their campaign by taking aim at Bank of America in a series of actions throughout the spring. The first one coincided with Leap Day protests put on by the Occupy movement. At Zuccotti Park, writer Matt Taibbi passed around this article, which I think he wrote exclusively for the event and not for Rolling Stone. It’s a gleeful broadside at BofA.
There are two things every American needs to know about Bank of America.
The first is that it’s corrupt. This bank has systematically defrauded almost everyone with whom it has a significant business relationship, cheating investors, insurers, homeowners, shareholders, depositors, and the state. It is a giant, raging hurricane of theft and fraud, spinning its way through America and leaving a massive trail of wiped-out retirees and foreclosed-upon families in its wake.
The second is that all of us, as taxpayers, are keeping that hurricane raging. Bank of America is not just a private company that systematically steals from American citizens: it’s a de facto ward of the state that depends heavily upon public support to stay in business. In fact, without the continued generosity of us taxpayers, and the extraordinary indulgence of our regulators and elected officials, this company long ago would have been swallowed up by scandal, mismanagement, prosecution and litigation, and gone out of business. It would have been liquidated and its component parts sold off, perhaps into a series of smaller regional businesses that would have more respect for the law, and be more responsive to their customers.
The entire article is a bill of particulars against BofA, a Too Big to Fail bank that Taibbi calls “the biggest welfare dependent in American history,” given the $45 billion in bailout cash it has taken and tens if not hundreds of billions more in no-interest loans from the Fed and other emergency programs. He highlights BofA’s move of its derivative balance sheet into an FDIC-insured part of the bank, putting taxpayers on the hook for trillions. And he mentions that BofA never keeps its promises, even after being cited for fraud. Take the lawsuit by Nevada and Arizona over BofA ignoring its obligations in the Countrywide settlement, where they delivered just 3% of the loan modifications promised, and indeed actively abused homeowners who had a legal right to the mods.
This is an important point:
Companies like Bank of America are a direct threat to national security, for many reasons. For one thing, they drive smaller, more honest banks out of business: since the market knows the federal government will never let Bank of America fail, it charges less to lend the bank money. That gives Bank of America, despite its near-junk credit rating, a competitive advantage over a smaller, regional bank that might have a better credit rating, but doesn’t have the implicit support of the federal government.
Worse still, stock market investor dollars that normally would go to more customer-friendly, more creative, and more commercially dependable firms will instead continue to flow to Too-Big-To-Fail behemoths like Bank of America, as buying stock in a company with implicit state support will be considered almost a safe-haven investment, like buying gold or Treasury bills.
There’s a deterrent factor at stake with Bank of America being kept alive by the government. Phil Angelides, the chair of the FCIC, says in a mostly good op-ed today that laws must be enforced to deter the same events from happening again and crashing the economy. Far from Tim Geithner’s boasts, we have not fixed this, certainly not when it comes to Bank of America. We look toward a future with only robo-signed, false mortgage documents from the TBTF banks if no checks are placed on their behavior.
Public Citizen has a formal request to the Financial Stability Oversight Council to break up Bank of America under section 122 of the Dodd-Frank law. Think of F the Banks as the grassroots counterpart to that. According to their Facebook page their next event falls on March 15.




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Who banks at this bank? A study needs to be done to find out who stands in line waiting to get robbed?
99% of Fortune 500 companies…
I’m talking about the people I see at my local branch standing in line . They have to be non compos mentis!
On the 5th of November I changed from a large regional bank to the Golden One CU, what a beautiful move that was, what a breath of fresh air, I didn’t know that with the bank it was like cancer.
There’s some work to do to get rid of the legacy TBTFs. But there’s some hope: the Fed seems to be putting its foot down on TBTFs going forward:
http://financeaddict.com/2012/03/the-end-of-too-big-to-fail/
I’m thinking it would be apropos if the bank managers wore stocking cap masks. Sort of a “full disclosure” thing…
They were originally Bank of Italy, not to cast aspersions on the wonderful Italian Americans (married to one) but if you read Tiabbi’s rant they seem like la cosa nostra not BBB.
So just what is the relationship between Working Assets and BoA?
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On January 19, 2012, Bank of America Corporation (the “Corporation”) announced financial results for the fourth quarter and year ended December 31, 2011, reporting fourth quarter net income of $2.0 billion, or $0.15 per diluted share, and for the year net income of $1.4 billion, or $0.01 per diluted share.
Their books must have many entries lightly written in pencil. They are banking on get out of liability for free cards they are getting from U.S. Otherwise they have no working capital.
Alternet has an interesting article which includes the following comment about money:
We think of money as the cash in our pockets or the bank, but, in truth, virtually all the money in circulation today is created by the banking system when loans are made. If everyone paid off all their debts, there would be hardly any money.
Doesn’t that strike you as strange?
I posted the link in today’s Lakeside Diner, but I think it’s important enough to post here as well.
B of A’s share price is up 44% since the beginning of the year. Wall Street doesn’t give a rat’s ass how many laws are swept under the carpet in the process, either by the SEC or by “Sgt. Schultz” Holder at the DOJ.
Most if not all of federal unemployment benefits are channeled through Bank of America. Wells Fargo also, I think.
If only some of the future UI checks were made out to current execs:)
Until we amend or over turn Citizens United and have publicly funded elections nothing will change IMHO. It is a good article but it highlights information that most of us here already know in some fashion or another. Money talks.
I am sending a copy of Taibbi’s inspired broadside to a close relative who banks at BofA.