$700 BILLION BAILOUT by Paul Muolo

I'm just starting to read a book called $700 Billion Bailout. the Emergency Economic Stabilization Act and What It Means to You, Your Money, Your Mortgage, and Your Taxes. The book is written by Paul Muolo. Don't let the title scare you. The book is written in easy to understand language that will give you chills.

If you have any question left in your mind about what all the fuss is about get a copy of this book. Just the Introduction should be enough to get your blood pressure up. More on this later I'm sure. I hope you will get a copy from your bookstore or library. 

Amazon link:
http://www.amazon.com/700-Billion-Bailout-Emergency-Stabilization/dp/0470462566/ref=sr_1_3?ie=UTF8&s=books&qid=1270540215&sr=1-3

Who are you giving your paycheck to?

Now I keep going over this in my mind and can't seem to get it straight...

Ok. WE customers go to the bank and put in our paychecks. And, when WE want to buy a house WE put 20% down, the bank carries the loan and if WE stay in the house for 30 years WE will pay about 5x the amount of the loan.

Then, the bank uses our money and in addition to the interest we pay and having the use of the balances we keep they make big bonuses and have a party.

Then, they go to the government and tell them they have no more of our money and the government gives them more of our money so they can charge more big fees and interest, get more bonuses, and have more parties.

Then, I watch the commercials on TV about how much these banks are helping us. And, it really makes no sense to me because I see foreclosed homes and homeless people all around.

So, let me get this straight...I'm a customer, I give money to banks so they can have parties, charge me fees, and throw my neighbors on the street while they sing a happy jingle on the TV.

Here is a partial list of banks that received tarp money. It is provided by Fox News so we know that it must be "fair and balanced"...

"RAW DATA: List of Banks Receiving Funds From $700B TARP

This list includes all the banks receiving funds from the Treasury's $700B Troubled Assets Relief Program (TARP).


The following is a list of TARP recipients as of January 31, 2009:

Bank of America Corporation
Bank of New York Mellon Corporation
Citigroup Inc.
The Goldman Sachs Group
JPMorgan Chase & Co.
Morgan Stanley
State Street Corporation
Wells Fargo & Company
Bank of Commerce Holdings
1st FS Corporation
UCBH Holdings, Inc.
Northern Trust Corporation
SunTrust Banks, Inc.
Broadway Financial Corporation
Washington Federal Inc.
BB&T Corp.
Provident Bancshares Corp.
Umpqua Holdings Corp.
Comerica Inc.
Regions Financial Corp.
Capital One Financial Corporation
First Horizon National Corporation
Huntington Bancshares
KeyCorp
Valley National Bancorp
Zions Bancorporation
Marshall & Ilsley
U.S. Bancorp
TCF Financial Corporation
First Niagara Financial Group...."

Here is the complete list:http://www.foxnews.com/politics/president/ci.RAW+DATA%3A+List+of+Banks+Receiving+Funds+From+%24700B+TARP.opinionPrint


Is your bank on this list? Are you still giving them your paycheck? But, they paid the TARP money back you say. Oh, that's right. They collected more fees from us so they could pay back our money that our taxes paid to the government. And, the banks keep having parties and giving out bonuses while the jingles play.

Do you have a story to tell?

If you have story to tell about a great or an ugly experience you have had with your bank I would be happy to share it on this blog. Please email the story to me at inthetrenches@live.com. Please do not include any personal information or account numbers. Do include the name of the bank. I do reserve the right to edit or abbreviate the content but will email you the proposed version before posting it. The purpose of this blog is to give customers an opportunity to hear the quality of service you have had with working with your bank. Also, please be sure to vote. If your bank is not listed let me know and I would be happy to add it. Carol

Banks Apply Pressure to Keep Fees Rolling In

The following excerpt is from an article provided by the New York Times to Yahoo Finance:

...So many people now dip their balance below zero that banks generated an estimated $20 billion from overdraft fees on debit purchases and A.T.M. transactions in 2009 according to Michael Moebs, an economist who advises banks and credit unions. All of this revenue is potentially at risk, since these are the two areas that the new Federal Reserve regulations cover. (Banks generate an extra $12 billion by covering checks and recurring bills; under the new rules, they can still cover those and charge fees without customers' consent.)..

There are growing reports among consumers about hundreds of dollars charged on small purchases. I guess $32 billion dollars is something to talk about.

New legislation passed help notify consumers, give them options, and put this bank revenue at risk. Read the complete article in the link below and if you have debit cards make sure you understand what your options are so that you can make wise decisions when you get all that mail from the bank telling you why they want you to think it is in your best interest to keep on paying these fees.

http://finance.yahoo.com/banking-budgeting/article/108894/banks-apply-pressure-to-keep-fees-rolling-in?mod=bb-checking_savings

A word to renters

What if a forclosure or eviction notice is posted to your door and you know you have been paying your rent on time? What do you do?

Landlords like everybody else have been affected in this economic crisis. Why? Because it is the housing industry that is at the heart of the problem, specifically the banking practices that effect the housing industry. The landlord may have multiple properties. Property taxes are going up dramatically to try and increase county and state revenue. Compounded by that, they may have also been affected by residents that live in the properties they own and have not been able to pay rent due to layoffs, garnishments, and weather expenses.

Sometimes the landlord will get behind on the mortgage payments. If this has occurred the property may be going into foreclosure. Representatives of the bank may be taking photos, and posting notices that you must move out immediately. This is seldom the case however it is unnerving and scary. It is easy to respond in anger or fear without knowing what your rights really are. This is not a good situation for anybody, however, as renters the government has put some protections and help in place for you!

The attached article indicates that Federal law may allow you to continue living in your residence all through the forclosure process and then 90 DAYS AFTER THE FORECLOSURE is finalized or until your lease has expired as long as you continue to pay your rent.

Take a copy of this article and then go talk to a lawyer to find out actually what your rights are:

http://money.cnn.com/2010/02/18/real_estate/keep_kicking_out_tenants/index.htm?icid=main|hp-desktop|dl3|link6|http%3A%2F%2Fmoney.cnn.com%2F2010%2F02%2F18%2Freal_estate%2Fkeep_kicking_out_tenants%2Findex.htm

Not only may you have much more time than you think but if the foreclosure is finalized the new owner may be willing to negotiate a new rental agreement with you so that you don't have to move at all.

This article is not intended to give legal advice. I am not qualified to do so. If you find yourself in this situation consult professionals who are qualified to give you accurate, legal advice.

The Frog and The Scorpion

There was an old children's story something about a scorpion who was wounded and got a frog to let him ride on his back to cross the river. Midstream that old scorpion bit the frog on the back knowing that they would both die. The frog, shocked and amazing asked the scorpion why he would do such a thing. The scorpion responded that the frog should have known he was a scorpion when the agreement was made.

The new credit card rules are here. But, even before they take effect the banks have structured a whole new set of fees and charges.

http://finance.yahoo.com/banking-budgeting/article/108854/the-new-credit-card-rules-what-to-expect?mod=bb-creditcards

So, if you have not already made your personal vow to cut up your credit cards and get rid of credit debt here is another story to remind you why it might be the best idea to do so.

America's Best and Worst Banks

I was so excited to see that a news story was coming out by Forbes that listed the best and worst banks. But alas, again, their analysis was only based on who made the most money. What about customer service? Even before the new credit card laws are in effect the banks have come up with a new list of fees and programs to keep their profits high off YOUR money while continuing to tighten the noose around their customers necks.

Remember it's YOUR money that they are making their profits from. If you are not satisified with the service take your money out. Don't judge a bank by their commercials.

If your bank has treated you well pass the word. If they have not then pass the word even faster.