Bank of America booted out Wells Fargo this week as the most talked about bank because of impending massive layoffs followed by merger rumors with Chase and the new $5 billion investment from Warren Buffet.
Most are concerned with the impending Hurricane Irene, which is heading right for the eastern seaboard; we wonder what this may do to our economy. However, if you live in striking distance of this deadly force, take all the precautions necessary.
After the earthquake earlier this week, residents fear what can happen in the event of Irene touchdown. Make sure your physically prepared as well as financially.
Bank of America (NYSE: BAC) announced their $5 billion influx from Berkshire Hathaway (NYSE: BRK.A) in exchange for shares of preferred stock after waving away rumors that they would be merging with JPMorgan Chase (NYSE: JPM). Meanwhile, Capital One is facing so much resistance from Barney Frank of the House Financial Services Committee for its purchase of ING Direct since he thinks it will make Capital One climb too high too fast.
Having said that, he would probably have an aneurism should BofA and Chase even send out a memo that they’re interested in pursuing such an enormous deal.
Good thing the former sent out a memo last week to the contrary.
Chase sent out a memo of their own, saying that as of November 19, the bank plans on removing the controversial Additional Withdrawal Fee, a $3 charge for each time you take out money after the fourth withdrawal each month.
This means that the first six withdrawals per month on your Chase Savings account will be free. More than that and you risk violating Regulation D, which may cause the bank to close your savings account entirely.
On the topic of banking news, TCF Bank ended their debit rewards Miles Plus program today and Wells Fargo will be ending theirs in October. U.S. Bank (NYSE: USB) this week introduced a new service: text and email alerts that will notify consumers of suspicious activity.
The IRS is tightening up their own procedures because of a newly released audit. They want to ensure that the amount of money collected by merchants matches the amount of third-party payments.
This will come into effect to reduce the gap between the amount of tax owed and that which is actually paid, an expected $10 billion in ten years.
This comes as financial institutions across the country made $28.8 billion year over year according to the FDIC. The climb represents the eighth consecutive quarter in increased earnings.
Somehow, 60 percent of banks saw improvements in their quarterly net income, and only 15.2 percent of financial institutions reported net losses for the quarter, which is down from 20.8 percent last year.
For those still concerned about the bleak future of employment, President Obama announced plans for new employment ideas in a speech he will give after Labor Day when he returns from vacation. It is likely to focus on the 6.2 million Americans who have been out of a job for six months or more.