It's pretty clear that greedy banks, and not Democrats or Republicans, are one of the primary causes of the Great Recession. Sure, they're a necessary evil. Most of us would be unable to afford a home, or even a car, without them. But they're not your friends. They're paying attention to their bottom line, not you.
Greater Pennsylvania Abstract title agent Tom Castellano, like many other title agents, can tell you story after story if banks who don't even get around to sending lending documents, including the mortgage, until hours after a real estate settlement. The money is always wored late, too.
That's your friendly bank.
But that's not the story Tom Castellano shared with me last week. His nephew, a Marine, was recently deployed to Kuwait. From there, it's on to Afghanistan. Lucky him. Anyway, he was at a food concession in Kuwait, where there are some American restaurants like McDonalds, and I guess he must have wanted a happy meal but had no cash.
A friendly bank, Wells Fargo, just happened to have an ATM machine at the ready. Tom's nephew was charged $5, just to use the machine. In addition, a 3% surcharge was imposed on his withdrawal of his own money. When his wife called Wells Fargo to complain about charging a ridiculous fee to an American soldier in a designated combat zone, a smiling customer service rep told her, "Well, he shouldn’t be spending money in a combat zone.”
According to Wells Fargo's web page, they will charge $5 ATM fees for use outside the U.S., as well as 3% of the amount of the withdrawal. But at their "worldwide military bank," they claim that "It's an honor to serve those who serve our country."
And take their money.
Wells Fargo, the nation's fourth largest bank, is under investigation by the DOJ for preying upon unsophisticated borrowers during the housing bubble, most of them black, and steering them into high-cost sub-prime loans.
Smile.
Greater Pennsylvania Abstract title agent Tom Castellano, like many other title agents, can tell you story after story if banks who don't even get around to sending lending documents, including the mortgage, until hours after a real estate settlement. The money is always wored late, too.
That's your friendly bank.
But that's not the story Tom Castellano shared with me last week. His nephew, a Marine, was recently deployed to Kuwait. From there, it's on to Afghanistan. Lucky him. Anyway, he was at a food concession in Kuwait, where there are some American restaurants like McDonalds, and I guess he must have wanted a happy meal but had no cash.
A friendly bank, Wells Fargo, just happened to have an ATM machine at the ready. Tom's nephew was charged $5, just to use the machine. In addition, a 3% surcharge was imposed on his withdrawal of his own money. When his wife called Wells Fargo to complain about charging a ridiculous fee to an American soldier in a designated combat zone, a smiling customer service rep told her, "Well, he shouldn’t be spending money in a combat zone.”
According to Wells Fargo's web page, they will charge $5 ATM fees for use outside the U.S., as well as 3% of the amount of the withdrawal. But at their "worldwide military bank," they claim that "It's an honor to serve those who serve our country."
And take their money.
Wells Fargo, the nation's fourth largest bank, is under investigation by the DOJ for preying upon unsophisticated borrowers during the housing bubble, most of them black, and steering them into high-cost sub-prime loans.
Smile.
After spending four years in the service, three and a half years voluntarily on a long tour overseas, I was honorably discharged and returned stateside. I purchased a used vehicle to seek employment and went to my previous car insurance company to insure the vehicle. I was told by the insurance agent that I no longer had a driving record and I would have to be assigned at a higher risk. This was a thousand dollars above the average annual installment! I proved to them that I drove overseas, kept foreign driving insurance and had a spotless record, but, nonetheless, they took advantage of a returning GI and said I was at a higher risk. Needless to say, I took my business elsewhere. These are just some of the issues for returning GIs when they come home. Who will speak up for them?
ReplyDeleteBill Hillanbrand
Did Charlie Dent give these guys taxpayers' money via TARP?
ReplyDeletePlease everyone do not take this as an endorsement of what Wells Fargo did with their ATM or what happened to Mr. Hillanbrand - both are disgraceful acts.
ReplyDeleteBut Anon 702am, you really need to read up on TARP. Wells Fargo received $25 billion under TARP in October 2008 for which Treasury received preferred stock in return. The $25 billion investment was repaid in full in December 2009 along with a total of $1.44 billion in dividends.
That's right, the US Treasury made a profit of $1.44 billion on the Wells Fargo TARP investment in just over 1 year.
Of the remaining $239 billion outstanding under TARP, 97% of it is owed by Fannie, Freddie, AIG, General Motors and GMAC.
There is certainly alot to complain about in Washington, but we do need to keep the facts in mind.
The Banker
Anon 7:02 never claimed the money wasn't paid back. Relax. The point remains that the banks were bailed out and continue to treat Americans like dirt - even combat soldiers.
ReplyDeleteGood story Bernie and I hope Dent does take this and run with it. Your buddy the evil genius whats-his-name will certainly see the political value in it.
ReplyDeleteI have tried to help a couple of recent vets get the advanced college placement they deserve for the skills theyve learned in the service and can tell you what they mostly find is tons of red tape.
So its not just the banks but if PNC can find a way to not charge a fee at WAWA im sure Wells Fargo can do the same overseas.
John Blankstein
ps Bernie, I sign all my posts (sometimes as Blanker). I think this maybe makes 5 of them.
Banks get TARP lucre. Banks report record profits. Banks stick it to service members. Banker defends banks because that's what bankers do. TARP banks continue to fail. TARP proponents continue to tout its success.
ReplyDeleteAnon 910, Anon 702 said the TARP money was 'given' to Wells Fargo. That just is not true and hardly connotes that it was paid back.
ReplyDeleteI also agree the point remains and is valid. Let's strengthen the Servicemembers Civil Relief Act, signed into law by George Bush in 2003 (which updated the Soldiers and Sailors Civil Relief Act which was originally passed in 1940), to cover these issues and protect our military. That it happens at all is revolting I agree, so let's get behind dealing with it and quickly.
Anon 931, I have hardly been a proponent of Wall St. or the big banks. Summarizing some of the points I've made on this topic:
* Many Wall St. bankers should be in prison for their actions.
* Barney Frank and Chris Dodd should be right behind them for their actions regarding crappy loans they forced Fannie and Freddie to make.
* The problems we ended up in were caused by everyone - Clinton via CRA changes in 1994, Greenspan easy money, Congress mucking around with the housing market and not overseeing Fannie or Freddie the way they needed to, Wall St., Bush, etc. There is more than enough blame to go around and anyone who tries to point to just one issue is either a hack or an idiot (and most of the time both).
* The only thing that will address 'too big to fail,' which is the root issue here, is at least doubling bank capital requirements. Wall St. bankers fear this more than anything else going because it will significantly cut into returns. Too bad - it's not my job as a taxpayer to back that band of idiots, and all the regulation in the world won't work as well as requiring more capital on the balance sheet. Dodd Frank does not address this issue in any satisfactory way.
So sorry, I'm not a Wall St. shill. But I am really tired of people ignoring facts to make their point. We all need to stop doing that.
The Banker
I'd love to meet that customer service representative.
ReplyDeleteWells Fargo figures a certain percentage of those in combat won't survive to lodge a complaint. These calculations are made by businesses every day. Banks are meticulous when evaluating risks. It's why they chain 19-cent pens to the counter and leave vault doors wide open.
ReplyDeleteBanker, Perhaps we should strengthen laws, as you suggest. But no matter what the arena, be it banks or a grocer, there will always be good ones and there will always be bad ones. I think Wells Fargo might be one of the bad ones.
ReplyDeleteBernie, I think most if not all big banks are bad ones. They have been regulated very poorly and grew to the point that they were entities unto themselves. We need to rope them back in and Dodd Frank doesn't do the job.
ReplyDeleteIf I came across differently that was my mistake.
The Banker
This is just more of Corporate America screwing you every way they can. They really love the hidden secret screw.
ReplyDeleteKeep helping them out America. Remember they are the ones that sucked the life out of your fathers and grandfathers and then dumped their jobs and pensions. A noble class to be sure.
I'm for a new feudal America. Go tea party!
Bernie -
ReplyDeleteI've never really understood the need for high ATM fees locally, since they allow the bank to have a presence without having to employ a teller. When they first came out and people balked at not having a real teller, the banks even touted the cost savings that could be passed on to the customer.
On the surface, it seems like the $5.00 + 3% fee is excessive in the Kuwait case that you cite.
Still, I would be interested to know the costs of providing/maintaining/securing ATM machines in a designated combat zone and keeping them stocked(presumably) with US dollars. It can't be cheap. Do you know those figures?
Anon 1:58 -
ReplyDeleteIf you think it's the Tea Party that continues to bail out the banks, I think you should look again at who's been President over the past 2-3 years, and also who had exclusive control over the Congress from 2007 to 2011.
"They have been regulated very poorly and grew to the point that they were entities unto themselves. We need to rope them back in and Dodd Frank doesn't do the job."
ReplyDeleteBanker, I respect your tone of discourse and sense your frustration. I think we need to question what, if anything positive, regulation has delivered, however. Our country's most hated institutions are government entities and heavily regulated private entities (airlines, utilities, cable).
I'm not in favor of the wild west. But it may be time to visit ideas which are counter-intuitive. After over 1,000 state and federal gun laws were violated in Columbine, the immediate and predictable reaction was to pass more guns laws, as if law #1,001 might be the one that would have prevented such a tragedy. The same with banking. More laws make more work for more lawyers to work around. And they will.
In the world of viral news stories, I'll bet public opinion and their fear of the market will cause them to fix this poor behavior. The system can work without Chris Dodd and Barney Frank visiting their wizardry on it.
Bank Customer
America has been screwing their war heroes since the beginning of time.
ReplyDeleteAs a veteran and an individual who lost his job and medical benefits when Bedlam Steel closed down, I tried to get my prescriptions paid for based on an 800 dollar a month pension. I was told I made to much money, yet individuals who are getting welfare and food stamps make more than I and they get free medical and prescriptions. In modern times, This is both democrats and republicans showing their disgraceful attitude to veterans. Thanks for an update Bernie, Let our congressman do something about this embarrassment. It's certainly long overdue.
All Hail the Corporate Ruling Class. Cut social security and medicare. We cannot afford these give aways. All hail the Corporate Overlords!!
ReplyDeleteYou friendly neighborhood Tea Party
Excellent point Anon 2:56. An ATM saves the company thousands of dollars in employee-related expenses. Surcharges are a ridiculous notion when you stop and think about it.
ReplyDeleteDon't blame this on the tea party, Dems or Rs. Blame it on Wells Fargo.
ReplyDeleteThis is a blessing bestowed upon us by our patrons, the all great and knowing Corporate Overlords. All Hail the Corporate Overlords.
ReplyDeleteWe as the Tea Party Express want to help spread the message of peace and prosperity though unbridled capitalism as spoken by the Corporate Overlords, All Hail the Corporate Overlords.
We are the apostles of the Corporate Class as foretold by the Corporate Overlords, All Hail the Corporate Overlords.
We are indeed fortunate to pay these fees, as they strengthen the American way of life as foretold by the Corporate Overlords, All Hail the Corporate Overlords!
Your humble and obedient apostle