Let the front-page public relations pitch begin!
"With flame of humanity, banks try to melt icy image" by Deirdre Fernandes | Globe Staff, August 07, 2013
Banks are trying to wipe away years of bruising headlines and blame for the financial crisis with a simple message: They care about you.
In print, television, and online advertising, mid-size banks and the nation’s largest institutions are spending millions to stress their relationships with customers, emphasizing the personal touch even as they shutter branches and invest in inventions, like mobile apps and smarter ATMs, that reduce actual human contact.
They’re featuring sepia-tinted photos and feel-good vignettes, with bankers in the background helping families plan for a wedding or buy a new dog. They spotlight their efforts to help military service members, struggling communities, and Main Street businesses.
Related: Banks unlawfully foreclosed on military members while they were on tours of duty
I believe the word is chutzpah?
Bank officials acknowledge their reputations have taken hits in the past five years and the advertising campaigns are an attempt to show consumers that banks do help people....
Yeah, the mortgage-backed securities fraud that destroyed the world economy and enriched them was all to help you; the illegal seizures of homes (despite all the settlements and new laws?) continues; JPMorgan's rigging of electric rates a la' Enron was for your benefit; and the job cuts in the midst of record profits, and I mean record record profits, like best ever, was all to help you!
You know, if I were a terrorist....
(Turn-in)
Bank of America, one of the nation’s largest banks, rolled out a campaign in April called “Life’s better when we’re connected,” developed with Boston-based advertising agency Hill Holliday. Wells Fargo & Co. of San Francisco has adopted the tagline “When people talk great things happen.” At TD Bank, it’s “Bank human again,” and at Eastern Bank, the state’s largest community bank, the slogan is “Here, you’re first.”
These $elf-delu$ional a$$holes think P.R IMAGERY and ILLUSION can SOLVE EVERYTHING!
Btw, Eastern Bank is the official bank of the Boston Red Sox, owned by Globe owner John Henry.
It’s no surprise that banks are trying a friendly focus, said John Verret, an associate professor at Boston University and former president of the Boston ad agency Arnold Communications. These commercials probably would not have worked two years ago, when the public was much angrier with banks and wouldn’t have believed the sentimental messaging, he said.
What makes him think we are believing it now?
But the economy is improving, and consumers are investing, spending, and borrowing more. That provides an opportunity for banks to gain new customers, Verret said.
“They’re all fishing,” Verret said. “They’re all trying to protect their base and trying to get as much new business as they can.”
But they are HELPING YOU!
This P.R. CAMPAIGN is about GETTING MORE LOOT for THEMSELVES!!!
And it's on the front-page of my Globe (sob).
C'mon, John Henry! Make change!
Still, it’s going to take more than soft-focused television spots and catchy taglines to burnish the reputation of banks, said Anthony Johndrow, a managing partner with Reputation Institute, a New York reputation management consultancy. After a mortgage crisis and government bailout, not to mention increasing fees, some banks are viewed by consumers with the same latent hostility as tobacco companies, according to a survey by Reputation Institute and the trade publication American Banker.
Worse, actually! At least the CIGARETTE makes you FEEL GOOD for a few minutes! There is NOTHING about the "banking experience" that does so, and both kill you!
Banks, Johndrow said, have yet to acknowledge mistakes that contributed to the recent mortgage crisis, foreclosure crisis, and economic crisis, or reassure customers that they’ve taken specific steps to prevent future crises.
No, they never admit to wrongdoing and have never apologized.
“I’ve seen very little apologies,” Johndrow said. “Nobody has owned up. They haven’t said we’ve done these things to make sure this won’t happen again.”
That's because they are back to doing all the same things again.
Instead, banks have unveiled new commercials. TD Bank ditched celebrities Regis Philbin and Kelly Ripa late last year in favor of spots that remind consumers that they’re different from other banks, not cold, gray, and automated.
Related: Globe Night at the Garden
Turns out they are no different than all the re$t.
TD isn’t trying to be the customer’s best friend, said Vinoo Vijay, the bank’s chief marketing officer. Instead, it is focusing on its convenience features, such as the coin-counting machines and late hours, he said.
Consumers see banks as a “necessary hassle,” Vijay said. “Our basic thought was that consumers like to have these human experiences.”
Private central banking is NOT necessary! Read your Constitution!
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Bank of America commercials show several narratives, including a dad using his credit card to take his sons out for the day to the aquarium, amusement park, and batting cages.
Click.
Related:
US taking harder look at debt collection practices
Big lenders face scrutiny on collections
But all the $elf-$erving lies are to HELP YOU!
For Bank of America, the ad campaign is just one element of the bank’s refocus after the financial crisis, said Meredith Verdone, head of Bank of America’s brand marketing. The bank is closing and selling about 12 percent of its nearly 5,700 branches and eliminating about 30,000 jobs in the next few years.
And that is JUST THEM!
It’s rebuilding its capital and trying to deepen its relationship with existing customers, by offering them more products and conveniences such as mobile banking, Verdone said.
But rebuilding the bank’s reputation will take time, Verdone said. Bank of America became a poster child for too-big-to-fail banks that engaged in risky practices that led to the financial crisis.
There is about eight of 'em.
On Tuesday, the Justice Department sued Bank of America, alleging that it defrauded investors by underestimating the risks of mortgage-backed securities.
See: Inside Job
Related: Mortgage late-pay rate falls but level is still elevated
UBS settles SEC charges for $50m
Bank of America is accused of fraud
Verdone said she sees hope that the ads are helping to change the bank’s image.
You can make yourself see anything you want to see sometimes.
Instead of the constant complaints about Bank of America on social media sites, some consumers have mentioned wanting to open an account after seeing a commercial, she said.
This is pathetic, people.
“We’ve had a few bursts of positive” mentions on social media, Verdone said.
Where, from executive offices on Wall Street and bank boardrooms?!
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This is disgusting to see in the early morning.
"Boston to get new Bank of America ATMs with video chats" by Callum Borchers | Globe Staff, April 04, 2013
After years of trying to take tellers out of banking, Bank of America will put people back into the experience — via video — in the very machines that replaced them.
The financial services giant said Thursday that it will begin offering live video chats with tellers later this month through a new generation of interactive ATMs that will debut at Bank of America’s Back Bay branch at 133 Massachusetts Ave.
Customers and remote tellers will be able to see and speak to one another in the same way that people talk on the popular video-calling service Skype — face-to-screen interactions that will make possible transactions that cannot be completed on traditional ATMs, such as cashing checks down to the penny and receiving bills in a variety of denominations, including $1, $5, $20, and $100....
The NSA can watch along, too!
Despite the popularity of electronic banking — about 30 million of Bank of America’s 53 million customers regularly bank online, according to the company — the industry is recognizing that people still crave human interaction....
Yup, that's BoA lookin' out for ya'!!
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Did you note the higher fees?
"Fee income lifts US bank profits" by Marcy Gordon | Associated Press, May 30, 2013
WASHINGTON — US banks earned more from January through March than during any quarter on record, buoyed by greater income from fees and fewer losses from bad loans.
The banking industry earned $40.3 billion in the first quarter, the Federal Deposit Insurance Corp. said Wednesday. That’s the highest ever for a single quarter and up 15.8 percent from the first quarter of 2012, when the industry’s profits were $34.8 billion.
Record profits show banks have come a long way from the 2008 financial crisis. But the report offered a reminder that the industry is still struggling to help the broader economy recover from the Great Recession.
Yeah, they are $truggling to help us!
Related: Fed is Working For Workers
Only about half of US banks reported improved earnings from a year earlier, the lowest proportion since 2009. That shows the industry’s growth is being driven by a narrower group of the nation’s largest banks.
Those banks include Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. Most of them have recovered with help from federal bailout money and record low borrowing rates....
FDIC chairman Martin Gruenberg said the banking industry ‘‘is in much stronger shape today than it was three years ago.’’ But he added that ‘‘it’s a fairly tricky environment for the industry’’ because of narrowing profit margins from charging interest and relatively weak demand for loans.
Where?
Income earned from interest on loans is falling in part because interest rates have been near record lows. The Federal Reserve’s aggressive stimulus programs since the crisis have exerted downward pressure on short- and long-term interest rates, making mortgages and other loans cheaper. The Fed’s low interest-rate policies are intended to boost borrowing and spending to accelerate overall economic growth.
And pour $85 billion dollars of printed paper money into bank coffers every month.
Still, many banks have adopted stricter lending standards since the financial crisis. So while loans are a bargain, they are only available to those who can qualify.
Another sign of the industry’s health is that fewer banks are at risk of failure. The number of banks on the FDIC’s ‘‘problem’’ list fell to 612 from 651 as of Dec. 31.
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"Fewer US banks failing as industry strengthens" by Marcy Gordon | Associated Press, December 29, 2012
WASHINGTON — US banks are ending the year with their best profits since 2006 and fewer failures than at any time since the financial crisis struck in 2008. They are helping support an economy slowed by high unemployment, flat pay, sluggish manufacturing, and anxious consumers.
As the economy heals from the worst financial crisis since the Great Depression, more people and businesses are taking out and repaying loans.
For the first time since 2009, banks’ earnings growth is being driven by higher revenue, a healthy trend. Banks had previously managed to boost earnings by putting aside less money for possible losses.
Related: Banks Reserve Profits For Themselves
Signs of the industry’s gains:
■ Banks are earning more. In the July-September quarter, the industry’s earnings reached $37.6 billion, up from $35.3 billion a year earlier. It was the best showing since the July-September quarter of 2006, long before the financial meltdown. By contrast, at the depth of the Great Recession in the last quarter of 2008, the industry lost $32 billion....
‘‘We are definitely on the back end of this crisis,’’ says Josh Siegel, chief executive of Stonecastle Partners, a firm that invests in banks.
The biggest boost for banks is the gradually strengthening economy. Employers added nearly 1.7 million jobs in the first 11 months of 2012. More people employed means more people and businesses can repay loans.
It really is all about the banks.
And after better-than-expected economic news last week, some analysts said the economy could end up growing faster in the October-December quarter, and next year, than previously thought.
That assumes Congress and the White House can strike a budget deal to avert the fiscal cliff, the steep tax increases and spending cuts that are set to kick in Jan. 1. If they don’t reach a deal, those measures would significantly weaken the economy....
Related: Sunday Globe Specials: Fiscal Cliff Fraud
I'm sure that made the banks happy.
On the other hand, many banks are no longer benefiting from record-low interest rates. They still pay almost nothing to depositors and on money borrowed from other banks or the government.
That is not good enough for you students!
But steadily lower rates on loans other than credit cards have reduced how much banks earn....
Even though they are making RECORD PROFITS!
Many banks have reported lower net interest margin, the difference between the income they receive from loans and the interest they pay depositors and other lenders. It’s a key measure of a bank’s profitability....
Oh, the poor, poor banks!
Some big banks have also cautioned that their earnings are up mainly because they’ve shed jobs, bad loans, and weak businesses rather than because of an improved economy.
Say again?
They include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., and Wells Fargo & Co. All managed to recover from the financial crisis in part because of federal aid.
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It's another golden age for corporate profits, even as the job market is still a piece of crap!
Related: Slow Saturday Special: Unemployment Check
US banks earned more from January through March than during any quarter on record
What did the bank $tatement $ay?
"US banks’ earnings increase masks deeper problems" by Christina Rexrode | Associated Press, July 18, 2013
NEW YORK — Major US banks have turned in big profit gains this season, but the news isn’t all good.
Much of the earnings increase is coming from cutting costs, rather than growing their core lending businesses. A boom in mortgage refinancing looks like it’s about to peter out. And regulators are considering stricter rules that would force the banks to shore up their cash.
All to help you.
‘‘It was a very good quarter with headline numbers better than expected,’’ said Anthony Polini, an analyst at Raymond James. But, he added, ‘‘the jury is still out’’ on the second half of the year.
He, for one, is not overly optimistic: Polini thinks that revenue from mortgages and trading activities, which helped earnings this time around, will suffer through the end of the year, and questions whether the US economy can grow enough to support anything more than sluggish loan demand.
Bank of America reported second-quarter earnings Wednesday, following JPMorgan Chase and Wells Fargo last week and Citigroup on Monday.
Related:
Citigroup reported a surge in second-quarter profit to $4.18 billion
Bank of America net income rose 63 percent to $4 billion
JPMorgan Chase profit surged in the second quarter to $6.50 billion
Wells Fargo's second-quarter profit rose to $5.27 billion
New records that the Globe kept quiet about!
Here’s more on what to take away from the season:
■ The numbers: There’s no denying that profits popped compared with a year ago. At Wells Fargo, whose profits grew by the smallest amount, earnings rose 20 percent. At Bank of America, they leapt 70 percent.
The problem is that it was not revenue growth that was driving the earnings. Revenue was basically flat at Wells Fargo, up 3 percent at Bank of America, 8 percent at Citi (where earnings rose 26 percent), and 14 percent at JPMorgan (where earnings rose 32 percent).
But revenue was not DOWN, either!!
■ Where earnings came from: There were several big factors driving second-quarter earnings growth.
The banks were able to set aside less money for potential bad loans. Banks have also benefited from a recent increase in interest rates.
Investment banking units also did well.
On the other hand, results from consumer banking have tended to be sluggish, a troubling sign in an economy built mostly on consumer spending.
Loan growth across the banking industry is down so far this year, and the industry’s loan-to-deposit ratio is at its lowest since 1984, added CLSA analyst Mike Mayo.
■ Penny pinching: Banks were also able to earn more money because they slashed costs.
Notably, Bank of America cut about 18,300 jobs over the year, or nearly 7 percent of its workforce. It also got rid of about 5 percent of its branches, and promised to cut more.
■ Refinancing: Mortgages have helped drive results at the banks for the past year, but it’s not clear how much longer that will last. Most of the boom has come from people refinancing their mortgages, rather than buying new homes, and that is likely to peter out as interest rates rise.
■ Regulatory overhang: Last week, US regulators proposed rules that would require big US banks to hold greater levels of capital. While the new rules would not take effect until 2018, and the banks said they are already at or near many of the proposed capital levels, the debate was another reminder of the government’s stricter control over the industry.
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Somebody is ma$king something!
"Bank earnings shine; tech firms struggle" by Steve Rothwell | Associated Press, July 28, 2013
NEW YORK — Just over half of the companies in the Standard & Poor’s 500 index have reported second-quarter earnings. Here are some of the things we’ve learned so far.
Banks and other financial companies have been the standouts. The materials sector, which includes miners and chemical companies, have fared the worst. Earnings are also contracting in the tech industry. Some older tech companies are reporting lower profits as they struggle to adapt while consumers embrace smartphones and other mobile devices.
Related: Sunday Globe Special: Tech Bubble Bursting
Overall, earnings growth is projected to slow for a third straight quarter. Analysts forecast that companies in the S&P 500 index will report earnings growth of 4.5 percent for the period, according to S&P Capital IQ. That’s a drop from 5.2 percent in the first three months of the year.
It’s not all bad news.
Earnings at US companies are expected to grow faster in the second half of the year as the economy strengthens.
By the fourth quarter, company profits are expected to leap 11.2 percent from the same period a year ago. That would be the fastest pace since the third quarter of 2011.
Banks: US banks reported surging profits after setting aside less money for bad loans. Major banks including Citigroup and JPMorgan Chase also profited from a boom in investment banking as recovering financial markets resulted in increases in fees for underwriting stock and bond offerings. Rising interest rates also helped banks earn more from lending.
Of course, it is ALL in the $ERVICE of doing you a FAVOR!
The outlook for banks isn’t as encouraging, however. There are signs that the boom in mortgage refinancing is starting to peter out.
Banks are forecast to post earnings growth of 24 percent in the second quarter.
“Old” tech: Microsoft wrote off nearly $1 billion from its new Surface tablet business and said that a poor reception for its Windows 8 operating system crimped revenue. Intel predicted flat sales. Even Google faltered.
Second-quarter earnings are expected to contract 5 percent for tech companies.
Europe: The slump in Europe may not be over, but there are some signs of hope, judging from comments made by industrial executives. General Electric’s CEO, Jeff Immelt, said Europe has stabilized. GE’s orders rose 2 percent after falling 17 percent in the first three months of the year.
Honeywell said that while conditions remained tough, there were hopeful signs.
A turnaround in Europe would be welcome news for industrial companies.
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Your paycheck -- and PINK SLIP!
"Big banks cut 31,000 positions" by Christina Rexrode | Associated Press, April 26, 2013
NEW YORK — Banks aren’t the big jobs machines they used to be.
One after another, major financial firms are trimming their payrolls. In first-quarter earnings announcements this month, Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley revealed that they have slashed more than 31,000 jobs, or 3.5 percent of their combined workforce, in the past year. For three of those banks, it was the second straight year of cutbacks. And the pattern is being repeated at banks around the world.
Layoffs in the depths of the financial crisis were to be expected. But four years later, at a time when many banks are reporting higher or even record earnings, the cuts are unsettling to an entire industry.
The losses are an unwelcome reminder of the meltdown and its lingering effects....
Uh-huh. What rank rot "journali$m."
The industry’s rhythm now veers more toward cost cutting than freewheeling. Those higher earnings? They’re not because business is great. They are because banks have been forced to make do with less.
I guess that's why they resorted to the LIBOR and LME looting schemes.
Related: Wall Street bonuses up 8 percent
Yup, Wall $treet making do with your le$$.
Citigroup’s new chief executive Mike Corbat, hired to turn around a bank that has struggled since the financial crisis and beforehand, said that examining costs and improving efficiency should be ‘‘business as usual,’’ and ‘‘not just an annual event.’’
What makes the situation especially harsh is that there were signs in 2010 and 2011 that banks would start hiring more people.
So we were told by the banker's mouthpieces!
Banks added about 45,600 positions in the United States in 2010 and 2011 combined, according to data from the Federal Deposit Insurance Corp. In the previous two years, they shed more than three times that many jobs.
Then last year, job growth was essentially flat. Some observers worry that the turnaround won’t ever happen....
It’s a far different mood from the precrisis years that were fueled by risky trading and complicated investments that eventually backfired....
Yup, BLEW UP right in front of TAXPAYER FACES!
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Excuse me, readers, but I have to go to the bank.
