Why Bank of America Corp (BAC) Can Have Its Way with You

Meanwhile, on the other end of the spectrum, larger account holders have little to no incentive to change banks, as they’re treated comparatively well. I discussed this last weekend with respect to Bank of America Corp (NYSE:BAC), which has prioritized deepening its relationship with its 8 million “preferred” customers while at the same time cutting the costs associated with servicing its 40 million “retail” customers.

Don’t worry, be happy
The net result is that, at least insofar as account retention is concerned, there’s really no such thing as reputational risk for the nation’s biggest banks.

Needless to say, this is great news for bank investors, as the negative press about the big banks’ various transgressions should ultimately make little to no difference with respect to their success and valuations. But also needless to say, it isn’t quite as good for the customers that unwittingly find themselves on the other end of it.

The article Financial Masochism: Why Bank of America Can Have Its Way with You originally appeared on Fool.com is written by John Maxfield.

John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Wells Fargo and (NYSE:WFC) owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.