Lawmaker Calls for Bank Boycott
Sen. Dick Durbin tells customers to bail on America's biggest bank
- Duration 8:28
- Date Oct 8, 2011
Sen. Dick Durbin tells customers to bail on America's biggest bank
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There are good customers vote with your feet.
Get the heck out of that -- That's democratic senator Dick Durbin telling folks to run away from America's biggest bank.
He's ticked that that bank is slapping customers with a five dollar monthly -- on debit cards.
The bank says it has to pay for a new regulation that -- put in place two sides of the story but when a senator calls for a run on the bank.
Fears of another financial collapse are running while.
Hi everybody I'm David -- -- of -- on marks let's go and focus witnessed Steve forbes' Elizabeth MacDonald.
-- -- -- -- -- -- -- -- Him -- Nicholas so Steve was He calling for run on the bank.
In essence He was in the Washington He thought would be in the business of not encouraging runs on banks that was to what 2008 was all about.
Jamie Dimon chairman at JPMorgan got it right.
If you don't allow somebody to charge for soda and restaurant they're gonna charge more for the burger so banks are raising fees -- of all these regulations they've taken out fifteen billion dollars of fact revenue have to make it up somewhere are they contract.
Neither one is good for the economy.
And market doesn't take much to cause a run in the bag and He just as recently as 2008 back when -- banks were really in a lot of trouble.
We saw -- runs -- places like indymac for example had a run at a bank that bank doesn't exist anymore.
Your -- you're absolutely right the problem here I think is very simple is is that are earnings here are up -- the banks are revenues are down.
Banks are trying to recapture their revenue but they're doing in the wrong way they're basically raising fees on consumers who can least afford it.
And you know that there's a really big problem here data in that this system is a federally insured deposits banks are encouraged to take risk.
With these deposits.
A big bonuses to their CEOs and then when they get in trouble the tax -- and the consumer are who pay for this to the system's broken here and something needs to be done about.
-- but that is the point is bags are still part of a capitalist system they have to make a profit.
If regulators -- like Dick -- force them to do things across the money.
They have to raise that money somewhere.
You know over the Democrats and Republicans both are -- in the banks over this that I just wanna say this is the worst.
Most cynical kind of attack.
On any business you know when the government comes along and wallop to revenue in this one -- -- visit by 50%.
You owe it to your shareholders to not make up that revenue -- If the politicians who did this -- I think this is a bipartisan effort decided.
That they could do it without these being raised elsewhere there either fit in -- -- even worse and more lame on economic policy than we ever feeder.
Jammed -- probably -- a course that nobody has any sympathy for the bags because they took all that money in the park.
Bail out they're they're keeping a lot of that money to make trades by Goldman's stuff and foreign currencies.
So Dick Durbin is playing do it somewhat sympathetic crowd now.
This is seriously.
I mean these banks can certainly afford these -- -- -- Citibank for example twenty point six billion dollars in revenues.
It -- -- and the latest court IBM -- a little bit of a different story as it did report a loss in the latest quarter -- ancillary costs related to its.
-- legacy mortgage issues but core business I point six billion dollars.
And -- is these banks can certainly afford -- -- regulations and an overall corporate and America.
Mean are all whining about these regulations every 10940.
Billion dollar is on the since the credit crisis so let's not feel sorry.
Well yeah and Oregon we have election America stock going down close to penny stock.
Our rating if it's below five dollars a share it's considered a penny -- I did these banks are in trouble now.
Yeah I have to disagree with -- honestly I think government involvement is just keeping this -- -- down and I'm not economy as a whole.
As the boss Steve mentioned before.
I think this is I think is really irresponsibly calling runs on banks especially Bank of America superb example.
They've been forced Biden regularly regulations to liquidate their assets either laying off tens of thousands of people.
And now they have revenue cut from another and from the same regulations.
It's it's this is just this is bad for business it's bad for the economy and at the end of the day people that are hurt the worst by this are you need to consumers because we have now -- checking accounts.
That are costing money and worse than that we've just given the banks another incentive not to -- prospective homebuyers and not to lend to small business and.
Get the heck out of that bank.
That's like crying fire and -- in a crowded dinner theater right.
-- it's it's really alarming that Dick Durbin did this and you're right I agree the irony is that Democrats like Dick Durbin are calling for boycotts of banks.
-- dude is swipe card price controls the -- increases that they pass themselves that the banks are reacting to the banks telegraphed.
That -- to hike debit fees.
A couple of years ago but I'm not say the banks are not -- -- -- -- gouging customers with this the irony is those white price controls fees on credit cards.
Did not stop would not stop the next financial meltdown that's the intent of -- frank would not stop too big to fail that was the intent to -- frank instead you know we have into Dodd-Frank bill but nobody really it has -- in its entirety in congress that could hurt the -- either.
Prices -- it'll rebuild that they -- marked as you said something if you see that something has to be done why do you think.
Needs to be done because -- do have a lot of cash on hand.
They're not want to get out because the economy so shaky right now you think the government should take over enforce our money out.
-- don't I've but I do think that somehow banks this has to -- tiger risk of banks take on more risk they should pay more in the system and they don't but what if they don't have the money some sort of a I think they do have the money though David I think that things are not great okay but these fees lets put these -- in to perspective they're probably about ten.
Less than 10% of total industry revenue here so the big board the big money is loans and trading in the and is anyone -- -- -- I just want to clarify something guys let's just.
To be -- Durbin did not call for a run on the bank saying the bank is is fighting to -- you'll get your money out being called for a boycott that's his right the reason you should worry about it is it.
Clark were so mad about TARP -- got paid back at a profit by the twenty largest banks several hundred small banks I had lunch with an -- -- person this week several hundred still -- 250 billion they're not gonna re being -- -- -- isolated this.
When the government can get the banks not to -- -- -- -- -- and by having mobs wielding -- they're gonna control the prices in your video magnet.
The point is the president was asked that the press conference on Thursday.
Do you want to dictate their profits -- the way companies are run He emphatically said -- but that's a sense that you get out of Washington to shoot chevys that's right.
And I think her recent Dennis but here's the issue until banks that they're gonna at what they're gonna do with their money or rather than incest he's -- -- Well Steve we came close to nationalize the banks back in 2008.
When they were in such trouble are are we going -- that route again.
Well despite the president's rhetoric that's what they're gonna do not formally take over the banks determined to virtue utility where they do is the politicians wish what would happen -- -- capitalist system.
Capitalist system would be like Western Europe stagnated and I don't know.
No job creation great Britain's got rid of northern -- and they fired people led to -- and Bradlee and other banks in Great Britain.
That's not nationalize it unsafe break up the banks there's a worry there's a monopolist it attitude -- the banks that they can incest and if you that they want that's -- -- -- to -- about more than just the -- breaking up because they're too big we're talking about the government directing how they do deal with their loans.
And this what I really think that the government does how to have a little bit of this Amy we bailed out these things I think maybe -- Already they pay no profit they Ali about Manhattan.
They other taxpayers fell a little bit right now I mean yeah there's grass and when they -- -- they -- when they weren't travel we came to their arrest and now the travel and maintenance you -- an industry I don't want them.
Really can't go ahead Steve He won an inch -- come back to health you don't rip about fifteen billion dollars and regulatory and Dick hats and then expect the thing to be -- luckily I think the same management at these filled banks why.
That's -- and I got to leave -- at that thank you very well.