Bank of America Gets It!

Dear Madame L,

I heard on the news last night that Bank of America has changed its mind and will not be billing its customers for using their debit cards to make purchases.

So are you still recommending that your readers stop using the big banks?

Sincerely,

Already a CU Member

Dear Already a CU Member,

Isn't that great news! And some of the other big banks have also gone back on their proposal to bill their customers for using their own money.

But the way it's being reported in the press lets us all know how begrudgingly this change has been made, as the Washington Post, for instance, made the focus of its story the $8 billion the big banks will lose by not charging these fees.

Congratulations on being a credit union member already. Yes, Madame L is still recommending and will always recommend that people use credit unions and local community banks to save their money. Remember, it's your money, not the bank's, and they're making money off it already, without charging you for using it yourself. Credit unions are run by volunteer board members, while banks are run by CEOs and board members who receive very large rewards for their work. 

Also, remember that Bank of America, which received a gigantic bailout from US, the taxpayers, is still planning to lay off (FIRE) 30,000 employees, after giving $11 million in severance pay to just two of its executives. Cartoonist GB Trudeau names those two executives, and so will Madame L. They are Joe Price and Sallie Krawcheck. They were laid off in September and replaced by two new rich people. 

Don't cry for Sallie Krawcheck, who, according to "Dealbook" (New York Times),  made $6.2 million in 2010 and $1.9 million the year before, the year she was hired.

And do thank the 22-year-old former Bank of America customer Molly Katchpole, who started the online petition, signed by hundreds of thousands of people, which finally made the giant bank change its mind.