Bank Of America Crashing And Burning
It’s hard not to dump on Bank of America, so I’m not even going to try to stop myself. If anyone ever needed to feel better about themselves, all they need to do is look at the mess that always seems to come at their expense. One of the largest banking systems in the world with supposedly some of the smartest people running it just can’t get out of the way of their own inept decisions, and now two more things are coming down on them.
The one most people know about is the federal government’s $1 billion lawsuit against them for mortgage fraud. They bought failing Countrywide mortgage company in 2008, then the banking system failed and caught up with them. What the government is alleging is that B of A not only knew about the bad things Countrywide was doing but actually continued doing them when they took over the company, right up until the time the feds bailed them out.
That’s pretty bad right? But that’s not all, as late night commercials still love to say. It seems that they’re also being hit with a discrimination suit, saying that the banking system didn’t even try to maintain foreclosed properties in minority neighborhoods and thus rendered many of those properties worthless, thus degrading the quality of those neighborhoods.
Of course I’ve chronicled their bad behavior on this blog almost from the time I created it. Back in 2009 they decided to add yearly fees to many of their credit card accounts who’d never had to deal with it, paid back its government loan way before they’d gotten their house in order to try to look good because other banks were paying theirs off, promptly posted a $5.2 billion loss, had one of their former CEO’s charged with fraud (I think he ended up getting 2 years in prison), lost another $7.6 billion, had their stock price fall from $56 all the way to $6.98 (it’s now hanging around $9 per share), got sued by New York state over foreclosures, and now this.
Frankly, only a very small part of me feels bad for them. It’s this kind of corporate greed and structure that makes most of us hate large corporations, especially banks. And yet we know that there are tens of thousands of employees working at these banks who go to work very single day trying to do the best job they can and provide the best customer service possible, keeping a straight and happy face while their leadership tries to bring the whole thing crashing down.
Will Bank of America soon be the largest bank in history to collapse? Truthfully, I hope not; I guess we’ll see as time goes by.