I'm with BOA currently. I have recently given thought to "more diversity" in my banking choices even before this revolution movement started up.
Over the past few years I have greatly reduced my "investments" held by BOA. I paid off my rental house mortgage 22 years early thereby saving myself tens of thousands of dollars in interest to BOA over that same time frame. My main house mortgage was paid off years before the rental. You should have seen the bank lady's face when I wrote her a check and told her I wanted to pay it off.
I looked up the bank ratings a few years back and discovered that they, (BOA) were rated "D" by the bank oversight ratings group. One step lower (E) and government oversight kicks in.... one more step (F) and the FED closes the bank. When I saw that "D" I knew I needed to have a backup plan. I needed to diversify, and that's what I have done and will continue to do.
All the majors were "D". That translated to "not in good financial shape" and this was after the bail out.
I found a local bank here in my small town that had a "B" rating and actually....as I searched all of the NC banks, and other places in the USA as well.... "B" seemed to be the highest rating any bank had at that time.
As it turned out, I have had my business accounts at this local bank for 20 years. I started moving some of my accounts to them, reducing the exposure I have in BOA.
I keep my finger on the pulse of what is happening in the financial world and I keep hearing things that cause me concern with having money in any bank, but the options NOT to use a bank in this age of online banking and the convenience it affords is also not much of an option unfortunately.
My advice: find a local bank where you can walk in and the bank manager knows you by your first name. Also, keep a "cash cushion" at home in a secure place. You never know what is going to happen that would cause the banks to close. It has happened before in this country and it can and probably will happen again. Read history. Remember the Savings and Loan closings in the 80's? The FDIC is a joke. The country is broke and the FDIC doesn't have anywhere close to a fraction of the money they would need.
Based on the global financial situation with countries in Europe being downgraded and on the edge of a financial tailspin..... Greece, Italy, Portugal, Ireland are the first to come to mind...... the future does not look very secure. They are changing nothing in the way they conduct business, which translates to an inevitable crash is coming. The only question is ...WHEN?
How are you prepared to deal with it when it happens?
post edited by Guitarhacker - October 06, 11 8:52 AM