December 10, 2009
There’s Never a Dillinger Around When You Need One

Here's a sorry story.

When the Wall Street collapse began, I took my son’s college nest egg out of a high income bond fund, and bought a one-year CD from Wachovia Bank at 4.5 percent interest. Now that the year is up, I thought I’d roll it over at the same bank.

Not going to happen. Now they are paying just one percent and forcing their customers (read victims) to buy an 18-month CD. I have a one week window in which to get that money out, or the bank will roll it over automatically at one percent.

Remember Wachovia is now owned by Wells Fargo, which bought it for $12 billion, shortly after receiving a $25 billion bailout from you and me. This makes it the second largest bank in the U.S. which is now even more “too big to fail.”

In October Wachovia raised its credit card interest rates three percentage points. Now they range from 12 to 22 percent Another brief story to show how capitalism really works.



Posted by Bill Doolittle at December 10, 2009 08:40 AM
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Can you find a credit union and become a member and get it in there.I live in Wachovia country. The credit unions seem to do a little better, not much but a little.

Posted by: tdr on December 10, 2009 10:26 AM

The Dillingers are all running the banks now.

Posted by: Ohollern on December 10, 2009 6:23 PM

An internet bank, like ING, will pay more than the 1% in a savings account and you have access to the money if something better comes along and they are FDIC insured too.

Posted by: Knowdoubt on December 11, 2009 7:30 AM

My small business failed this past spring partially because my bank took its bail-out money and bought another bank. Meanwhile, they couldn't extend my credit line even though I had A-1 credit rating. The bank Vice President apologized to me and said they "just weren't loaning to anybody right now." Now I'm unemployed, broke, and waiting/praying/working for the revolution that will inevitably come.

Posted by: colonelgirdle on December 14, 2009 12:21 AM
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