Competition and public out cry does work as Bank of America (NYSE:BAC) nixes the $5 dollar a month cash grab. OK so they fix the problemo but what about the thinking that got them there. The fee increase is widely seen as a marketing debacle. How do we know BAC has learnt its lesson? You can only wait and see.
The debit card fee was hatched in the CFO’s office. He liked the spread sheet. The marketing guy might have known intuitively that it was a mistake. But he lost the board room battle.
This post was written from a caveat emptor perspective.
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Expect the bank and financial stocks to be politically battered for the next year as politicians say nothing but stupid stuff about the economy. Obama‘s not so secret second term agenda is a return to the Glass Steagall format. Crazy risks not to be underwritten by the citizens of the United States.
How to pick winners in the financial sector? Look at how well banks and financials are transitioning to the new regulatory format. They all know it’s coming. Just look at what is happening at the “Prop Desks”
Disclosure: George Gutowski writes from a caveat emptor perspective. I personally view a return to a Glass Steagall environment as a good thing. I do not hold any positions in stocks mentioned in this post. I do not have plans to initate new positions within the next 72 hours. But I am watching the sector like a hungry dog looking through a butchers window. I like my meat aged nicely.
- Abandon hope on financial stocks Obama needs the punching bag. $XLF $C $BAC $WFC $MS $JPM $GS (financialskeptic.wordpress.com)
- #Banks rig earnings results with loan loss shell games Read Why $XLF $C $WFC $MS $BAC (financialskeptic.wordpress.com)
- Tim Geithner Bails Out Financials, Without A Single Dollar (MS, GS, BAC, WFC, C, JPM) (247wallst.com)
- BofA’s China Stake Sale Is Better For Holders Than Buffett (BAC, BRK-A, BRK-B, JPM, WFC, XLF, FAS) (247wallst.com)
- Earnings Hat Trick: Ignore Bank Book Values (JPM, BAC, C, WFC, GS, MS, BBT, BK, COF, FITB, PNC, STI) (247wallst.com)
- Check Out All Of The Fascinating Things We Learned During Last Week’s Earnings Announcements (C, WFC, HAL, IBM, GCI, JNJ, KO, BAC, GS, AAPL, YHOO, INTC, CSX, DPZ, MS, BLK, UTX, AXP, EBAY, AMR, NYT, BX, T, IR, PM, FITB, LUV, BSX, GE, HON, VZ, MCD) (businessinsider.com)
- Goldman Could Chop Another 3,000 Staff (GS, BAC, MS, C, WFC) (247wallst.com)