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Bank of America

Executives Given Large Severance Packages from B of A

Adam Rust's picture

Posted October 11, 2011

In a move that seems to contradict any analysis of public sentiment, Bank of America just rewarded two departing executives with millions of dollars in severance.

Bank of America awarded Sallie Krawcheck and Joe Price with $11 million in severance. B of A released both from their contracts. Each had just one year remaining on their

Five Reasons to Not Raise Bank of America's Dividend

Adam Rust's picture

Posted March 24, 2011

The Federal Reserve denied the request by Bank of America to increase their dividend. B of A proposed to pay common shareholders seven cents per share per quarter.

Shareholders generally like dividends. My dad went to Wharton and he often took time, when he wasn't fixing his cars, to talk about investing. He liked dividends. He felt that you could place some trust in a company that could pay a dividend. In fact, one of the first things I

Big Banks Undecided on PrePaid Strategy

Adam Rust's picture

Posted February 23, 2011

Big banks have already said that they intend to enter the prepaid card market, but their success or failure is far from certain and could hinge on how they frame the purpose of the entire space.

Banks are no longer going to offer free checking willy nilly. You will have to have a hefty deposit account, or use other services that generate enough revenue to justify the costs to the bank. It is the

same with branches.  Banks are closing branches in low-income neighborhoods.

The writing is on the wall. A relationship with a local full-service retail

bank branch is no longer an essential element for every American household. In the future, it may be something that we think about quite differently. It may be something that becomes a distinguishing factor between the middle class and everyone a few rungs below them.

Countrywide's Legacy: Doom for Bank of America

Adam Rust's picture

Posted November 23, 2010

Now we have news that the nation's largest mortgage originator, Countrywide, systematically skipped over the basic framework of how property is legally identified and represented in their transactions.

This administrative lapse could cost Bank of America billions of dollars, according to Daily Finance.

A team leader from B of A's Mortgage Litigation department testified at a New Jersey hearing that it was "customary for Countrywide to maintain possession of the original note and related documents." That is a surprise,

Bank Notes

Adam Rust's picture

Posted August 9, 2010

May you live in interesting times...

Bank of America, Citigroup, and other lenders with lots of deferred losses are facing an unusual situation. The UK is about to reduce corporate income taxes by one percentage point. Were taxes on earnings to be reduced in the US, then some of the biggest banks would have to book losses on their "deferred tax assets." Citigroup has more than $50 billion in deferred tax assets, and Bank of America has another $30 billion.

The Fifth Third Burger. Approximately 4,889 calories and 299 grams of fat.

No More Free Checking, More Unbanked

Adam Rust's picture

Posted June 21, 2010

Bank of America's decision to transition away from free checking means that even more Americans will opt out of a relationship with a mainstream bank. Most likely, those consumers will join the 80 million Americans that meet one of the definitions of "unbanked."

Bank of America plans to introduce new accounts that include a monthly service fee.  Unless a customer is profitable, meaning that they keep a large checking balance or that they use other B of A Products, they are going to face the prospect of paying $10 a month just to have the ability to write checks.

Banks have put some effort into courting the unbanked, but their efforts have not been paying off. The Bank On initiative started off well in California, but it has never become a nationwide success. In North Carolina, bankers killed the Bank On program.  Community groups, whose buy-in is necessary in order to drive unbanked households into the program, refused to agree to tell their clients to use the Bank On product unless it was free of overdrafts. The banks didn't budge. They weren't willing to even offer one overdraft refund per year.

Regulatory reform has brought some change to those positions. Bank of America's response is to punt. They're not the


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