Bank of America---What now??

[Barbaraok]

Originally posted by MikeandClaudia:
My point is that, worst scenario, the FDIC has to take over, it is going to cause a tremendous conflict in my and everybody elses lives to get things straightened out and changed to another bank account.

Might it not be most prudent to go ahead at this time and begin the process so that we are ahead of, or beyond the curve if this happens?

Myself and a pot full of other people were sitting back when the banks were playing fast and loose giving way-high loans to people on houses that no one could afford, and wondering what in the world was going on. I, and YOU, knoew of many people that were in houses (and even RVs) that were over their heads. WHY were these people being driven off of a cliff?

Why didn't the banks wake up??

You don't have to do anything - the FDIC comes in (has done so about 14 times this past year) takes over the bank, makes sure everything is running, and then looks to sell the accounts/deposits to another institution which may or may not change the name of the bank. They will help you make any necessary changes, but things go on as they were before - much like any of the bank purchases/takeovers of the past few years.

Barb

[chasfm11]

You don't have to do anything - the FDIC comes in (has done so about 14 times this past year) takes over the bank, makes sure everything is running, and then looks to sell the accounts/deposits to another institution which may or may not change the name of the bank. They will help you make any necessary changes, but things go on as they were before - much like any of the bank purchases/takeovers of the past few years.

Barb

Barb, I wonder if that can really be true for BOA and Citi. The stated problem is that the Government cannot rid them of their "toxic assets" without taking them over. If I understood correctly, the plan is to take over each bank and sell off the "good" assets, leaving only the "toxic" ones which cannot currently have values set for them. Reading between the lines, that means that the company that I currently understand as BOA, with its capabilities, will no longer exist afterwards. This is not about protecting the assets that I have with them, it is about dealing with the entity itself on many levels. One of the problems that BOA finally got fixed was the disparate way that each of several division that they acquired separately treated me as a customer. I suspect that if there are pieces of the current organization sold off, I'll be back to be treated differently by the sold off parts.

Don't get me wrong, I personally believe that many industries, in the name of efficiency, have consolidated into organizations that are unwieldy to manage and anything but efficient. General Electric, Exxon Mobil and both Citi and BOA are but a few on that list for me. I understand that in industries like oil where many countries have nationalized the companies and where our petroleum giants have tried to compete on a even playing field, size is a factor. But the downfall, especially in the banking industry that these meg-companies have helped to cause, is not good for any part of the world economy. I hope we have learned that lesson.

[Oldrtrcr]

Had a credit card through B of A and had no problem with them as I paid it in full each and every month. However, I dumped them like a bad habit when I found they were issuing credit cards to illegal aliens. When I called to cancel the card they asked why. When I told them they had nothing to say including a good-bye at the end of the phone call. They hung up on me.

[JC2]

Originally posted by Oldrtrcr:
Had a credit card through B of A and had no problem with them as I paid it in full each and every month. However, I dumped them like a bad habit when I found they were issuing credit cards to illegal aliens. When I called to cancel the card they asked why. When I told them they had nothing to say including a good-bye at the end of the phone call. They hung up on me.

You did good. It's their loss. I dumped them along time ago because of their incompetance.

[Glen41]

I thought it was citigroup that was being nationalized, not B of A.
BTW to quote Clinton: "It all depends on how you define Se..er...Nationalization."
They said "No Nationalization".
Then they said,"It's not Nationalization till the Govt owns more than 50 percent of the common stock."
Then they said,"It's not nationalization till the Govt owns all of the common stock."
My definition is as soon as the Govt owns ANY common stock, it's a done deal. I think they are well over 50 percent now.