Bank of America Extends Branch Hours – I Wonder Why?
Posted on July 25th, 2008 in Daily Mortgage/Housing News - The Real Story, Mr Mortgage's Personal Opinions/Research
“Bank of America Announces Extended Hours at Retail Banking Centers This Weekend to Meet Increase in Savings Deposits”
The press release emphasises the longer hours are because they want to make sure their customers can take advantage of the 4% rate on their new 7-month CD rates’. This is only half of the story. Could the other half be because Bank of America is taking in an unusual amount of large deposits in the past few weeks? My sources say ‘yes’. Bank of America appears to be doing very well on the deposit front. Whether this is at the expense of other banks, I do not know.
I am of BofA bull (or sorts). I still think they will feel pain in the next few years, as will most businesses due to the obvious economic down turn yet to come due to the total collapse of the mortgage and housing markets. But during the bubble years, they largely stayed out of the mortgage scene operating primarily as a mortgage banker unlike Wells Fargo, CITI, Chase and US Bank who actually have $10s of billions of on-balance sheet residential mortgage exposure.
While the Countrywide purchase my yet to prove disastrous, they have said recently they do not plan on making good on Countrywide debt and only plan to keep the good stuff. I wrote about it last week.
Draw your own conclusions on this one but when it comes to on-balance sheet mortgage risk and exposure vs size and liquidity, I am under the opinion BofA is one of the strongest large banks. Perhaps the general public is not as stupid as regulators think and understand this as well.
The BofA press release below says it all. -Best Mr Mortgage
Bank of America Announces Extended Hours at Retail Banking Centers This Weekend to Meet Increase in Savings Deposits
Friday July 25, 2:44 pm ET
Customer demand for bank CD and savings products continues to grow. For example, in the first two weeks of July, Bank of America nearly doubled its expectations for deposit growth in Los Angeles. Nearly three out of four dollars in new deposits in the company’s largest markets were deposited in Los Angeles and San Francisco this month.
Source: http://biz.yahoo.com/prnews/080725/clf057a.html?.v=1
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July 25th, 2008 9:28 pm
I think this was part of SEC’s Cox Protection of the 19 banks. While many were foreign, BofA is on that protected list and after IndyMac, who wants to take a chance? While BofA will be left standing after the smoke clears, in one part because they have taken the capital from the other banks which will keep them well capitalized.
On the downside, the funds flow will under capitalize the unprotected banks causing premature failure where it might not have otherwise occurred.
http://www.bis.org/statistics/derstats.htm
I think the Fed came out with the list because the big players have the large derivative positions which now total as of December 2007 596 trillion with a market value of 14 trillion dollars. Over half of that is interest rate derivatives with a market value of 7 trillion. They have no choice but to protect the big banks that hold the largest part of the derivative exposure.
July 25th, 2008 9:55 pm
Failed Bank Information Bank Closing Information for First Heritage Bank, N.A., Newport Beach, CA
July 25th, 2008 9:56 pm
Failed Bank Information Bank Closing Information for First National Bank of Nevada, Reno, NV
both closed tonight
July 25th, 2008 9:59 pm
Two weeks after the Federal Deposit Insurance Corp seized IndyMac Bancorp Inc, the Office of the Comptroller of the Currency said it closed First National Bank of Nevada and First Heritage Bank NA of California.
First National had total assets of $3.4 billion and $3 billion in deposits while First Heritage had assets of $254 million and $233 million in deposits, regulators said.
July 25th, 2008 10:04 pm
Perhaps Mr. M this answers your question or at least part of it till WaMu.
July 26th, 2008 10:39 am
This seems to be more of a marketing ploy to me than anything else.
B of A is a money center bank and the overwhelming majority of its assets and deposits come from wholesale operations, not the small retail customer.
Tony
July 26th, 2008 11:21 am
If you do the CD on-line the interest rate is 4.11%. Just over at BofA and they told me it is only good through Tuesday.
July 26th, 2008 1:26 pm
Funny – no real mention of the two small banks going under in the ‘mainstream’ news today.. they both just quietly slipped under the water.
July 26th, 2008 2:10 pm
Mr. Mortgage–
My only hope now that our elected officials have once again chosen to SCREW responsible, tax paying citizens– is for this list to circulate far and wide in the blogs, where millions of Americans are now so pissed off, they don’t know what to do!!
Every single person that voted YES, should be voted out of office ASAP!! Let’s start a nation-wide movement to remind them WHO they really work for by truly voting them ALL OUT…
Here is how the Senate Voted. Only 13 Republicans opposed the Bank/irresponsible borrower Bailout bill of 2008:
Grouped By Vote Position YEAs —72
Akaka (D-HI)
Alexander (R-TN)
Baucus (D-MT)
Bayh (D-IN)
Bennett (R-UT)
Biden (D-DE)
Bingaman (D-NM)
Boxer (D-CA)
Brown (D-OH)
Brownback (R-KS)
Byrd (D-WV)
Cantwell (D-WA)
Cardin (D-MD)
Casey (D-PA)
Chambliss (R-GA)
Clinton (D-NY)
Cochran (R-MS)
Coleman (R-MN)
Collins (R-ME)
Conrad (D-ND)
Craig (R-ID)
Crapo (R-ID)
Dodd (D-CT)
Domenici (R-NM)
Dorgan (D-ND)
Durbin (D-IL)
Feingold (D-WI)
Feinstein (D-CA)
Gregg (R-NH)
Hagel (R-NE)
Isakson (R-GA)
Johnson (D-SD)
Kerry (D-MA)
Klobuchar (D-MN)
Kohl (D-WI)
Landrieu (D-LA)
Lautenberg (D-NJ)
Leahy (D-VT)
Levin (D-MI)
Lieberman (ID-CT)
Lincoln (D-AR)
Lugar (R-IN)
Martinez (R-FL)
McCaskill (D-MO)
McConnell (R-KY)
Menendez (D-NJ)
Mikulski (D-MD)
Murkowski (R-AK)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Reed (D-RI)
Reid (D-NV)
Roberts (R-KS)
Rockefeller (D-WV)
Salazar (D-CO)
Sanders (I-VT)
Schumer (D-NY)
Sessions (R-AL)
Shelby (R-AL)
Smith (R-OR)
Snowe (R-ME)
Specter (R-PA)
Stabenow (D-MI)
Stevens (R-AK)
Sununu (R-NH)
Tester (D-MT)
Voinovich (R-OH)
Webb (D-VA)
Whitehouse (D-RI)
Wicker (R-MS)
Wyden (D-OR)
NAYs —13
Barrasso (R-WY)
Coburn (R-OK)
Corker (R-TN)
Cornyn (R-TX)
DeMint (R-SC)
Ensign (R-NV)
Enzi (R-WY)
Grassley (R-IA)
Hatch (R-UT)
Hutchison (R-TX)
Kyl (R-AZ)
Thune (R-SD)
Vitter (R-LA)
Not Voting – 15
Allard (R-CO)
Bond (R-MO)
Bunning (R-KY)
Burr (R-NC)
Carper (D-DE)
Dole (R-NC)
Graham (R-SC)
Harkin (D-IA)
Inhofe (R-OK)
Inouye (D-HI)
Kennedy (D-MA)
McCain (R-AZ)
Murray (D-WA)
Obama (D-IL)
Warner (R-VA)
July 26th, 2008 6:05 pm
Should check how much money they received from Fannie and Freddie. Ah yes it’s to save the “system”. Famous last words. Their nice little “system”.
July 26th, 2008 6:44 pm
I wonder what happened to Bunning and his threatened filibuster.
July 26th, 2008 11:02 pm
Carl:
Thanks for the list. Both my Senators voted “no.” (God bless Texas.) Meanwhile neither McCain nor Obama voted. Hmm.
The bill also raised ceiling on the National Debt by $800bn, to $10.615tn.
Busy, busy, for a Saturday.
July 26th, 2008 11:18 pm
BTW, the National Debt currently stands at a little more than $9.544tn. Which if my calculator is working correctly, means the Feds have written themselves a blank check for $1.071tn, with which to pump the leaky air mattress back up.
July 27th, 2008 12:56 am
Bunning said he’d do everything in his power to stop this thing, right? Does that include NOT VOTING? Is there a specific reason why Bunning could not vote? If not, he deserves to be on the list of Vote Outs. What a putz if he has no good reason on why he didn’t vote!
I did notice my two TX reps gave a vote of no. Yes, I sent them letters, too. I’ll have to follow up with a thank you letter.
July 27th, 2008 1:05 am
Their ‘nice little system’ is KAPUTT (beyond repair). They’ve managed to make the Black hole bigger – and hungrier, while pretending to be ‘fixing’ things. They ‘fixed’ things, alright. Get ready to be eaten alive!
To repeat: “The US Congress is Israel-Occupied Territory” (Senator Fulbright – when a few Senators were still senatorial and not bought by AIPAC or the other parts of the ‘Israel Lobby’!)
July 27th, 2008 1:10 am
JimBu, RonP and the rest of the baker’s dozen did nothing more than ‘Grandstand’. It’s GAME OVER, folks! – and the Fat Lady is clearing her throat for the final rendition of “We’ll meet again” (from “Dr. Strangelove”).
July 27th, 2008 1:19 am
By the way, Karl D over at Market Ticker put on the ultimate Grandstand by rallying his groupies to protest in DC – a total waste of time and $$$. They shoulda protested in front of the NYC Israel Embassy – where they’re rejoicing with their Zionist members of the Senate this evening, no doubt. Did anybody see Greenspan?
July 27th, 2008 1:34 am
Great info – keep up the great work.
July 27th, 2008 10:10 am
EO – Karl Denninger and my friends over at http://www.TickerForum.com have done more to alert more people about the fraud and lies perpetrated on the American world by the banks and Govt than any other single source around.
I am glad you reminded me. I am going to do an expose’ on KD and the TickerForums.
July 27th, 2008 12:10 pm
You’re right, admin BUT the reality, unpleasant as it is, is that desperate times call for desperate measures and KD’s measures fall FAR short of what is required to stop the rape of America. To begin with, we must remove the masks of the rapists and reveal their true identity. Otherwise, efforts like KD’s are just futility at best – and a deceptive cover-up (HaHaHa!) to protect the true culprits and their ENDGAME, at worst. Grandstanding, here or anywhere, will NOT ‘do ‘it’ (unmask the slimeballs)!
July 27th, 2008 12:35 pm
PS The net result of KD’s ‘Call to Arms’ (faxes, emails and letters to Congresscritters), is that only 13 baker’s dozen Senators voted against the bill – more proof that Congress is “Israel-Occupied Territory”. (Sen. Fulbright). Remember what Lieberman said: “I have loyalties that are greater than my party”. He, and many others like him! The fact is, when the ‘masters of the universe’ call Congresscritters ‘front-and-center’, they had all better answer that ‘Call to Arms’ (against Americans) – OR ELSE!
July 27th, 2008 12:48 pm
PPS Did I hear you say: “OR ELSE what?”
OR ELSE: JFK, Paul Wellstone, RFK, Arafat, Rachel Corrie, ‘suiciding’, ‘falling’ off tall buildings, ‘drowning’ in lakes, ‘outing’ of all sorts (blackmailing), bribery, etc., etc., etc. Use your (vivid) imagination. If you don’t have any skeletons in your closet, they will ‘manufacture’ one for you.
July 27th, 2008 2:37 pm
admin:
Thanks for the tip on Karl Denninger. Your link led to a dead end, though. So I goggled up the site. Here’s the link to it.
July 27th, 2008 2:42 pm
Aha!!!
I knew I smelled a couple of rats.
July 28th, 2008 6:55 am
Yes, KD is part of the problem. We should all do what EO does – blame me for everything from disease to divinity on random internet message boards and on a blog no one visits.
July 28th, 2008 4:35 pm
Maybe they will use the money taken in on the 4% cds to fund their newly announced covered bonds. Paulson said the banks do not need legislation to sell the new covered bonds which are tied to housing, whereas the new banking legislation will not go through for the next several months.