Banks value wealthier customers

Bank of America execs are likely breathing a huge sigh of relief as unprofitable customers stampede for the exits and head for community banks and credit unions. [“Bank fees going up — and going to stay,” Business, Oct. 19.]

In a commercial bank, such as BofA, not all customers are created equal. The more money you have deposited, invested or borrowed from a bank, the more profitable you are. Customers who actually have to pay the debit-card fee simply don’t make enough money for a bank to warrant giving them free checking accounts.

Whether a checking account debit transaction originates as a check, a debit card, ACH item or a wire transfer, it requires significant staff, very large computers, communications lines and databases in order to be processed. Debit transactions also require branches and staff to handle not only withdrawals and loan payments, but also the ever-important deposit. And silly as the leading-edge technologist might believe it to be, many customers still want to visit their branch and speak to a real human being.

BofA has made some spectacularly bad decisions in the past few years, with unbridled growth and the acquisition of Countrywide being at the very top of the list. Maybe all the bad press will make them a bit humbler or at least a little contrite as they toss 30,000 loyal employees straight into the unemployment line. All of us who have lived through bank consolidations and downsizing over the past 30 years know that those jobs will never see the light of day again.

— Bill Anderson, Auburn