Education :: Olin Business School Study Finds Insider Information Helps Analysts at Big Banks
In layman’s terms, B of A took $118 billion of dodgy assets, stuck them in a separate pile, and asked taxpayers to pay 90% with the losses following the first $10 billion. In exchange, it turned out to issue Uncle Sam $4 billion in preferred stock yielding 8%, plus warrants worth 10% bank of america chicago (http://bankofamerica.loginins.com/) this amount. A month earlier, Citigroup (NYSE: C) did a similar thing on a $306 billion pool of assets.
All things considered, it really is interesting to note then that there is one area where issuers aren’t tightening their standards. The single category where standards are now being loosened is overdrafts on checking and debit cards but it’s not with regards to extending an olive branch to pushed customers. Called “courtesy overdrafts” with the industry, banks are allowing bigger and more frequent overdrafts on these accounts after which charging huge fees to the courtesy. An action that’s originally part of good customer satisfaction has been morphed into one of the primary revenue drivers at banks in the united states as coached by way of a new variety of consultants that teach banks the way to wring more income out of each customer.
‘When you assume, you are making an ass beyond u and me.’ ~ Oscar Wilde on Assumption
“We feel at ease with the results we’re getting, so starting in January you will notice a ramp-up [in foreclosures]“.