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Bank Transfer Day: Bank Transfer Day is scheduled for November 5, 2011. The idea behind this day is to have as many people as possible transfer their savings and checking accounts out of the hands of large banks and into the accounts of credit unions.
The supporters of the Occupy Wall Street movement say that Bank Transfer Day will deal a stunning blow to large corporate banks around the United States, helping to put ordinary citizens back in control of their own finances. However, there's a catch.
One of the primary corporate banks being targeted by Bank Transfer Day is Bank of America, who recently announced a new round of extremely unpopular fees for their basic account products.
Many people who currently hold accounts at Bank of America have decided to switch their accounts over to small local banks or credit unions anyway, citing their disapproval with not just the fee, but with customer service at Bank of America, as well. As of 2010,
Bank of America held a little over a billion dollars in deposit accounts, which was a little less than half the total assets of the company. This mass migration of account holders could very well topple the company, even if such a thing were remotely possible.
This move could potentially send shock waves through the entire economy, beginning with Bank of America and spreading through other banks, as well. Is it a bad thing?
Not only would the dissolution of Bank of America mean tens of thousands of people out of work, but there would then be repercussions in the investment sectors of these banks as well as in mortgages and small-business loans, which would then be sold to other banks or investors.
The worst-case scenario? The federal government gets involved, being the only potential purchaser of these loans if other large banks can no longer do so. Another key point is just how much can these credit unions absorb? Do they actually have the means to take on so many accounts? Probably not.
Here's the thing, though. Bank Transfer Day is bound to only attract a certain number of supporters. While it could have a significant effect on these bank's balance sheets, there really isn't going to be much in the way of real damage to the large banks themselves.
That would make November 5, 2011 less of a turning point, and more of a beginning, if that makes any sense. A return to real customer service? One would hope so. At the very least, Bank Transfer day should be good for that. It would be about time we had the big banks sucking up to consumers again for a change.
The supporters of the Occupy Wall Street movement say that Bank Transfer Day will deal a stunning blow to large corporate banks around the United States, helping to put ordinary citizens back in control of their own finances. However, there's a catch.
One of the primary corporate banks being targeted by Bank Transfer Day is Bank of America, who recently announced a new round of extremely unpopular fees for their basic account products.
Many people who currently hold accounts at Bank of America have decided to switch their accounts over to small local banks or credit unions anyway, citing their disapproval with not just the fee, but with customer service at Bank of America, as well. As of 2010,
Bank of America held a little over a billion dollars in deposit accounts, which was a little less than half the total assets of the company. This mass migration of account holders could very well topple the company, even if such a thing were remotely possible.
This move could potentially send shock waves through the entire economy, beginning with Bank of America and spreading through other banks, as well. Is it a bad thing?
Not only would the dissolution of Bank of America mean tens of thousands of people out of work, but there would then be repercussions in the investment sectors of these banks as well as in mortgages and small-business loans, which would then be sold to other banks or investors.
The worst-case scenario? The federal government gets involved, being the only potential purchaser of these loans if other large banks can no longer do so. Another key point is just how much can these credit unions absorb? Do they actually have the means to take on so many accounts? Probably not.
Here's the thing, though. Bank Transfer Day is bound to only attract a certain number of supporters. While it could have a significant effect on these bank's balance sheets, there really isn't going to be much in the way of real damage to the large banks themselves.
That would make November 5, 2011 less of a turning point, and more of a beginning, if that makes any sense. A return to real customer service? One would hope so. At the very least, Bank Transfer day should be good for that. It would be about time we had the big banks sucking up to consumers again for a change.
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