I’m sorry, but I’m having a REAL hard time believing this load of manure:
DCDecoder asks [Motley Fool’s] Morgan Housel: Why do you think Bank Transfer Day may end up working out for banks AND customers?
Housel: One of the drivers behind [Bank Transfer Day] is people trying to teach banks a lesson. The irony of that is since the financial crisis, and especially over the last three months as there has been a panic about Europe… banks have been inundated with cash deposits. They’ve been seeing a higher inflow of deposits than they can turn into loans.
That’s putting pressure on their margins because banks have to pay [Federal Deposit Insurance Corp.] premiums and overhead costs. And that’s really accentuated by smaller accounts because in the past banks could earn money [from customers with lower balances] from overdraft fees and debit interchange fees and a lot of that has been scaled down through recent regulations…
People are going to be moving to credit unions, and that’s good for them because they’re going to have lower fees, they’re going to have better service, they’re going to have the feeling that they are investing in their community. And then the banks are going to be better off because they are getting rid of their least-profitable or not profitable clients. It helps them stem this tsunami of cash that’s been flowing in that they don’t know what to do with.
Yeah, those poor banks, awash in other people’s money. Why, oh why are they being treated this way? I mean, imagine it: people actually putting money into banks! What do they think they are? Banks or something?
The fact is, by all reports, credit union membership is positively soaring since Occupy Wall Street began. Kos has a good run-down HERE and there are many other examples out there as well.
And all this crap about the poor banks being so relieved that people are leaving in droves? I think there’s a whole lotta face-saving bravado going on. So, sorry, I’m not buying it. Not even for a second.