Bank of America (BoA) loses $2.24b

Discussion in 'Politics, Religion, Social Issues' started by GoCubsGo, Oct 17, 2009.

  1. GoCubsGo macrumors Nehalem

    GoCubsGo

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    Feb 19, 2005
    #1
    I find this interesting. With the CEO "stepping down" and walking away with $69 million in deferred compensation and stock awards BofA posts a $2.4b loss. While $69m is nothing compared to $2.4b, this speaks to my theory that if a company loses under the CEO's watch then there shouldn't be such a large payout when they're basically asked to leave.
    Article Link

    Brief snip from article:
    Screen shot 2009-10-17 at 11.07.53 AM.png
     
  2. thegoldenmackid macrumors 604

    thegoldenmackid

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  3. GoCubsGo thread starter macrumors Nehalem

    GoCubsGo

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    #3
    ^ Nice edit. ;) At least your initial post had been written differently.
    I do know that the CEO pay was covered, but the losses I don't think were.

    BoA is known for big spending, this will end badly for them no doubt.
     
  4. thegoldenmackid macrumors 604

    thegoldenmackid

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    #4
    I am so lost, at least they aren't paying the CEO this year.
     
  5. ucfgrad93 macrumors P6

    ucfgrad93

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    #5
    While I am a believer in the free market, I am sick to death of CEOs walking away with huge payouts when they run the company into the ground.
     
  6. yg17 macrumors G5

    yg17

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    #6
    So if I have a checking account at BoA, should I be worried? :confused:
     
  7. NT1440 macrumors G4

    NT1440

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    #7
    I'd like to know as well, all my money is there right now.
     
  8. GoCubsGo thread starter macrumors Nehalem

    GoCubsGo

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    #8
    I still have a BoA account as I'm transitioning to a bank that is local and more stable. That said, I believe BoA is still FDIC insured so unless you have more than $250k in the account I would not totally panic. I would however look forward to the fact that the FDIC could serve them with a C&D on lending, which does not affect retail banking.

    Remember, they posted the losses but some of those were offset by their troubled ML acquisition, which turned out to be rather profitable.
     
  9. yg17 macrumors G5

    yg17

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    #9
    Thanks. I wish I had enough money to worry about the FDIC limit.
     
  10. barkomatic macrumors 68040

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    Manhattan
    #10
    BOA was charging a relative of mine $45 a month for the privilege of using their checking account -- and even though she had an account $2 to cash a check. That place is a racket.

    As for CEO pay, as long as the bank is not receiving any government bailouts then I don't care. As we know that's not the case with BOA, so I hardly think a CEO should walk away with $69 million.
     

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