Bank merger benefits shareholders, not account holders

State News

Discussion

March 12, 2010

By Wes Browne Register Columnist The Glasgow Daily Times Fri Mar 12, 2010, 10:43 AM CST

RICHMOND — I have had my personal checking account at the same bank since I was in school. How I chose my bank was simple. My brother-in-law at the time was a branch manager and I opened an account with him. He left my bank and my family years ago, but I have stayed with my bank all these years for a simple reason: It was easy. Now my bank isn’t my bank anymore and it’s time for me to go, too.

Last year, my bank was purchased by a larger bank and shortly thereafter, I started receiving literature from the larger bank explaining that my bank was now part of their “family” and that things would be great. I knew better.

Bank mergers are not intended to benefit bank customers; they are intended to benefit shareholders. I understand that, but frankly the larger bank’s continued insistence that this change was somehow good for me and other customers is rather irritating. The cover of each piece of glossy literature the larger bank has sent me touts this change as exciting and beneficial, but the contents within detail only drawbacks.

Before the bank even changed its name, I heard from friends who suddenly had their credit limits lowered. Eventually, the same thing happened to me. What good news!

Guess what other good news I received? The larger bank is changing the routing number on my checking account. How exciting! Now I get to contact my water company, electric company, waste collection company, credit card company and on and on to change my billing information so my automatic withdrawals all can continue. How I’ve missed dealing with those companies — this will give us a chance to catch up.

It gets better. My debit card account number (that I not only had committed to memory but also had associated with numerous accounts) is changing, too. I was bored with that old card number anyway. Now, I get a fresh new number to learn and replace with the online merchants I frequent. You are probably beginning to understand just how good this is for customers … but that’s not all.

Today, I logged in to online banking and my bank account isn’t there. But that’s okay, I get to go on a new Web site with the larger bank and start from scratch. I am especially looking forward to re-entering the names and addresses of everyone I like to send electronic bank drafts (of course I can only do this after I go to their Web site and enter the not one, but two codes the larger bank sent me to set up online banking with them).

The good news doesn’t end there. I get to pay new fees! My checking account now includes a monthly fee as well as many other fees detailed in an exciting correspondence sent to me by the larger bank. The fun never stops.

I understand these things happen. Most corporations seek to maximize profits and they don’t really care about people (although according to five members of the United States Supreme Court they are people). But you know what? If you tell me you’re going to serve me lima beans and then serve me lima beans, you sold me straight. If you tell me I’m getting ice cream and you serve me lima beans, you’re just being dishonest. I don’t have to like it and I don’t have to stay. Of course, switching banks is also a hassle and will entail many of the same issues. So, I get to choose between lima beans and lima beans. I just want some ice cream.

Wes Browne is a Richmond attorney. He can be reached at http://www.brownelawoffice.com

Text Only

State News

It’s back to the drawing board for legislators
Confusion reigns in the wake of a judge’s ruling that state redistricting maps passed by the General Assembly are unconstitutional. That ruling said until the legislature offers a plan that meets constitutional muster, 2012 candidates for the legislature must run in the districts drawn 10 years ago.

February 9, 2012
Pending redistricting ruling overshadows legislative business
It has been hurry up and wait this week in Frankfort. With everyone waiting to learn if a Franklin Circuit Judge will throw out the legislature’s plan to re-draw legislative districts and a hold on the filing deadline for fall elections, lawmakers are watching the calendar and court docket more closely than that day’s orders.

February 4, 2012
ELLIS UPDATE: Lawmakers closer on new district mapping
Democratic House Speaker Greg Stumbo said Thursday that lawmakers in the Republican Senate and Democratic House are close to an agreement on re-drawing the congressional district map.

February 3, 2012
UK, UL leaders: Cuts are hurting higher ed
The presidents of the University of Kentucky and the University of Louisville told a legislative panel that they will keep working to achieve the goals of higher education reform passed in 1997 in spite of on-going budget cuts. But they made it clear it won’t be easy.

February 3, 2012
Lawmakers closer on new district mapping
Democratic House Speaker Greg Stumbo said Thursday that lawmakers in the Republican Senate and Democratic House are close to an agreement on re-drawing the congressional district map.

February 3, 2012
Stumbo files anti-pill mill bill
Under provisions of a bill filed Thursday in the General Assembly, pain clinics would have to be owned by licensed health care practitioners and any health care professional who prescribes controlled substances would have to register with and utilize the state’s electronic tracking system.

February 3, 2012
Jill York files to run against Rocky Adkins
The new legislative district maps prompted some tough decisions by some key lawmakers – even before the new map and Tuesday’s filing deadline were cast into doubt by a Franklin Circuit Court restraining order.

February 1, 2012
Filing deadline extended for congressional races
While attorneys argued before a judge about the constitutionality of the state legislative redistricting plan, the General Assembly has extended the filing deadline for congressional races — because lawmakers can’t agree on a map for congressional districts.

January 31, 2012
GOP files suit over new state districts
Three Republican lawmakers and two private citizens filed suit Thursday in Franklin Circuit Court to have the House legislative redistricting plan declared unconstitutional.

January 27, 2012
Committee reviews pill mill bill
Just one day after state and federal law enforcement officials raided a Paintsville pain clinic for the second time in a year, a Senate committee Thursday began reviewing a bill to regulate such clinics.

January 27, 2012
More State News Headlines

State News

Search Results

Discussion

Bank merger benefits shareholders, not account holders

Site Map