Estimated $4.5 billion was moved on bank transfer day

[Texashiker]

Will this send the banks a message?

http://www.businessinsider.com/angr...s-in-october-before-bank-transfer-day-2011-11

Its estimated that credit unions gained 650,000 new customers, and 4.5 billion was transferred out of banks.

 

[Ausm]

Looks like the Republicans were off a little thinking only people working at Walmart would be moving their cash..

 

[MomentsofSanity]

I posted this in the thread about November 5 specifically but it wasn't just on transfer day. That was an estimated number from the period of September 29, when BAC made their fee intention known up until just before transfer day.

What was interesting was that CU's opened 600,000 in 2010 and the 4.5B i the same amount of deposits they would expect from their entire client base in a month. They did that with just new customers in the same month's time.

The artical I linked which was written the day before bank transfer day.

http://www.globalpost.com/dispatch/...imated-650000-americans-switched-credit-union

 

[JeffreyLebowski]

That's really a drop in the bucket.
http://www.federalreserve.gov/releases/h8/current/
The last reporting period US banks had $8 Trillion in deposits. The $4.5b is a half of one half a percentage point of their total deposit balance.

 

[crownjules]

It's also more than just the transfer of $4.5B in account values. Those accounts will no longer trigger merchant side debit card fees. No overdrafts. No monthly checking account fees. So it probably amounts to more than that over time.

edit: But I agree, it's a token gesture and the big banks have far more wealth to care about a measly $4.5B. Not that it's not worth it to act on your beliefs and convictions of course.

 

[Macamus Prime]

America, move a trillion - and then we'll talk.

 

[Dulanic]

I find the whole idea behind bank transfer day stupid. I will keep my money where I find the best benefit of doing so. Whether that is a big bank or a little bank I will do what get's me the larger payback.

For the most part I use 2 banks 1 big 1 not so big. To limit yourself based on stupid shit like this is well...stupid. Use what works for you and what gives you the most. The bank is there for you, not vice versa. So pick what is there for you in the way you want.

 

[DesiPower]

China doesn't care, money is still in US, they can still control it by ordering their bitches in Washington around anytime. Now if it moved to foreign country or traded in Forex...

 

[bfdd]

That's cool. Glad some people did it.

 

[LegendKiller]

ROFL. This is truly so insignificant that isn't not even worth mentioning. As somebody said, let me know when it hits a trillion, then I'll stop scoffing.

 

[JS80]

In other news big banks are more profitable as unprofitable small value accounts have moved to credit unions. Also adding to the profit trend is the increase in institutional investment - primarily by credit union clients.

 

[Texashiker]

ROFL. This is truly so insignificant that isn't not even worth mentioning. As somebody said, let me know when it hits a trillion, then I'll stop scoffing.

The longest journey starts with a single step.

 

[K1052]

It's also more than just the transfer of $4.5B in account values. Those accounts will no longer trigger merchant side debit card fees. No overdrafts. No monthly checking account fees. So it probably amounts to more than that over time.

edit: But I agree, it's a token gesture and the big banks have far more wealth to care about a measly $4.5B. Not that it's not worth it to act on your beliefs and convictions of course.

If they are closing their accounts then yea the impact is much more than just the loss of deposits. The massive PR failures of US banks recently has been pretty astonishing. Also that $4.5B was just lost over October. If the big four (particularly BoA) continue shedding deposits and customers at this rate even they have to acknowledge the problem.

Local/regional banks and credit unions have been stepping up competition markedly in the last few months to fill the customer service void. If congress ever decided to break up the banks into retail/commercial lending and investment concerns again they'll really be in the shit.

 

[LegendKiller]

The longest journey starts with a single step.

Sorry, but how many of these silly gestures have their been? Ultimately, the will to do something meaningful comes from finding and electing people who will reconstitute Glass Steagall, require certain leverage ratios and break up the banks. Nothing else is needed in the banking sector than those 3 simple things. All of this other BS about the Fed and everything else is just that, BS. We don't need a journey or an odyssey, we need simple but bold steps to restore the financial markets.

Find me that guy and I'll vote for him. Until then this is an empty gesture and one that's rather pathetic considering the real challenges facing us.

 

[woolfe9999]

ROFL. This is truly so insignificant that isn't not even worth mentioning. As somebody said, let me know when it hits a trillion, then I'll stop scoffing.

Still, it's far more impressive than many people on this board were projecting. And it's clearly nowhere near over. Probably it doesn't get to where it will affect their bottom lines directly in any significant way, but the bad PR alone is having an effect. Why did Wells and BoA back off from charging these new fees?

 

[rudder]

So all the pro-government spending folks who said we must give money to these banks or face economic collapse... are now realizing that had these banks failed... there would be a large number of smaller, well run banks that would then be able to grow by moving into new markets. Yes, run on sentence, I know.

 

[LegendKiller]

So all the pro-government spending folks who said we must give money to these banks or face economic collapse... are now realizing that had these banks failed... there would be a large number of smaller, well run banks that would then be able to grow by moving into new markets. Yes, run on sentence, I know.

Yeah, because the list of hundreds of small banks in trouble isn't an indication that the smaller banks are in trouble too.

Let's not even get into the discussion that we DID face economic collapse. However, in the follow-up, the banks do need to be broken up. Nothing would have been good about letting the big banks go BK, nothing. Small banks would have been blasted to hell, if only because of the high funding costs and horrible asset values from liquidation of assets.

Nice dogma though.

 

[Nebor]

Still, it's far more impressive than many people on this board were projecting. And it's clearly nowhere near over. Probably it doesn't get to where it will affect their bottom lines directly in any significant way, but the bad PR alone is having an effect. Why did Wells and BoA back off from charging these new fees?

Yup, I bet that puts them in the red this quarter.

PR doesn't mean squat when their important customers are millionaires (and other institutions, such as credit unions,) they're backed by the government and they're still making billions of dollars in profit per quarter. Do you think the bank exec on a private jet with your senator is going to shed a tear over $4.5B in withdrawals? "Sorry senator, the caviar hot tub is missing 3 eggs, darn those occupy wallstreet rascals!"

 

[K1052]

So all the pro-government spending folks who said we must give money to these banks or face economic collapse... are now realizing that had these banks failed... there would be a large number of smaller, well run banks that would then be able to grow by moving into new markets. Yes, run on sentence, I know.

The collateral damage from say the top 10 banks folding within a few days of each other would have been mind boggling and they couldn't just pour money into the next tier of banks to take up the slack with no notice.

 

[LegendKiller]

The collateral damage from say the top 10 banks folding within a few days of each other would have been mind boggling and they couldn't just pour money into the next tier of banks to take up the slack with no notice.

Not even to mention how much equity would have been wiped out in that span just from the liquidity premium destroying asset values, not even impairment of principal, just liquidity/liquidation premium. The amount of wealth that would have just evaporated would not have been just filled in overnight.

The foolishness of some people is staggering.

 

[halik]

I find the whole idea behind bank transfer day stupid. I will keep my money where I find the best benefit of doing so. Whether that is a big bank or a little bank I will do what get's me the larger payback.

For the most part I use 2 banks 1 big 1 not so big. To limit yourself based on stupid shit like this is well...stupid. Use what works for you and what gives you the most. The bank is there for you, not vice versa. So pick what is there for you in the way you want.

This. Have both a big bank acct and two CU membership.

 

[highland145]

In other news big banks are more profitable as unprofitable small value accounts have moved to credit unions. Also adding to the profit trend is the increase in institutional investment - primarily by credit union clients.

Be interesting to see the next quarters income numbers for BoA.

 

[lothar]

ROFL. This is truly so insignificant that isn't not even worth mentioning. As somebody said, let me know when it hits a trillion, then I'll stop scoffing.

This.

 

[K1052]

Sorry, but how many of these silly gestures have their been? Ultimately, the will to do something meaningful comes from finding and electing people who will reconstitute Glass Steagall, require certain leverage ratios and break up the banks. Nothing else is needed in the banking sector than those 3 simple things. All of this other BS about the Fed and everything else is just that, BS. We don't need a journey or an odyssey, we need simple but bold steps to restore the financial markets.

Find me that guy and I'll vote for him. Until then this is an empty gesture and one that's rather pathetic considering the real challenges facing us.

In the absence of a legislative remedy the DoJ should be prying under the hood of anything that looked/looks the least bit sketchy and filing suit where possible.

 

[JS80]

Watch in 6 months deposits trickle back as those people who moved to CUs experience the lack of ATMs and service.