Comments off the Lincoln Madison blog
No, the banks have used their bailout windfalls to fund acquisitions. They've used more of the bailout money to buy other banks than they have to make more loans!
Oh, I didn't mean to suggest that the two were in any way exclusive. The banks have used our tax money to buy other banks, to pay dividends, to pay eight-figure bonuses, and to make more toxic loans, not to mention buying naming rights on stadiums. GM cut Tiger Woods loose; couldn't Citi have cut loose the new Mets ballpark? The part about new toxic loans just happens to be the latest piece of the puzzle I've heard about.
I remember back when there actually used to be choice when it came to banks.
Back in the early '80s, I opened a checking account at United California Bank. UCB had just opened a new branch and was offering free Charter Accounts. Eventually, UCB changed its name to First Interstate Bank. I was reasonably happy with the service.
Wells Fargo decided to launch a hostile takeover and succeeded in taking over FIB. For me, it was a disaster. WF decided to start charging me fees on my Charter Account, but changed its mind after everyone complained. WF also decided to cancel my plain ATM card and replace it with a Visa (or MC, I can't remember) debit card. I called to ask them to replace it with a plain ATM card. They didn't want to do it, but I was persistent. So they immediately cancelled my new debit card and mailed me a new ATM card (note the timing). When my new ATM card arrived, I discovered that I needed to go into a WF branch to activate it and setup a PIN.
Periodically WF would 'forget' about my Charter Account and would charge me checking fees.
I looked around and decided to open a free checking account at CalFed. The staff at CF were always friendly and cheerful. Life was beautiful.
Until Citibank bought CalFed. Suddenly things got frosty and rigid. Very New York. They started charging me fees on my checking account.
Looking around again, I found Washington Mutual. I opened a free checking account there. Life was happy again.
Chase took over WaMu. Chase is another New York bank. I'm not optimistic...
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