bank rates credit cards insurance finance calculators

Bad Boy Nominee: Brian Moynihan

Bad Boy Nominee: Brian MoynihanBiography: Moynihan has served as CEO of Bank of America since 2010.

Why he’s a contender: He helped fuel a populist revolt against big banks in 2011 after he approved a $5 monthly fee that customers who used their debit cards would be charged.

Following a wave of criticism — and the creation of Bank Transfer Day — Moynihan and his bank backed off, but not before whining that Bank of America has a “right to make a profit.”

What his firm did: The bank made one of the worst acquisitions ever when it purchased Countrywide Financial in 2008 (before Moynihan was named CEO). Countywide financed many of the nation’s mortgages and was a leading subprime lender.

When those loans soured, Bank of America lost billions. The bank then received billions in federal bailout money during the recession.

Recovering from this blunder, Bank of America has cut jobs, made checking accounts more restrictive and removed ATM machines to save money — making it more difficult for consumers to bank.

Like the other big banks, Bank of America has been the subject of several lawsuits related to its consumer-unfriendly practices.

In 2011, the bank agreed to pay a $410 million settlement that it improperly levied overdraft fees on its debit card customers. The lawsuit claimed the bank processed transactions in the order of highest dollar amount to lowest dollar amount rather than chronologically.

This practice sometimes leads to multiple overdraft charges.

Comments (0)
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 4.50 out of 5)
No Existing Comments

Comments are closed.