US Bank's Contempt for Consumers

“Why are the most risky loan products sold to the least sophisticated borrowers? The question answers itself — the least sophisticated borrowers are probably duped into taking these products.”

A 2007 quote from former Federal Reserve member Edward Gramlich, as quoted in Paul Krugman's latest op-ed piece in the New York Times, and it pretty much sums up a question that millions of American consumers would like to ask their banks.

I'd sure like to ask Bank of America. Here's a behemoth that defines "too big to fail". BOA got $20 billion in taxpayer funds from TARP then a guarantee of $118 billion to cover the assets of the questionable acquisition of Merrill Lynch

Yet they've fattened their own wallets by feasting on the checking accounts of it's own customers (including the blogger) using bogus charges and inflated penalties. They've used bad math, intentionally slow processing of foreclosure documents and chop shop law firms to boot people from their homes.

And how does Bank of America treat it's "least sophisticated borrowers" (see minorities) and those most subject to it's exorbitant overdraft fees?

I took the picture above with my Blackberry at the Bank of America located just off the intersection of Pico blvd and San Vincente blvd in LA last Thursday night about 8:30pm

The bank is surrounded by moderate to lower income rental apartment units, but there's a good size shopping center with a CVS, Ralph's, hardware store and a police station right there. But at night, if you try and withdraw cash - the machines "mysteriously" don't work.

Instead of dispensing cash - you get a screen like the one above stating that the machine is out of order, "please visit one of our other ATM's nearby". Nearby meaning a machine in an area with less African-American and Hispanic consumers?

Funny, as Paul Krugman observes in his latest column, Republicans seem determined to prevent the Federal government from granting it's own citizens from having even basic measures and protections in place to prevent large banks from praying on them. WTF?