Why People Hate Bank of America Corp (BAC)

Page 1 of 2

It’s fair to say that Bank of America Corp (NYSE:BAC) is the pariah of the banking world. It found itself at the bottom of the heap in a J.D. Power survey of mortgage customers; it was the worst-performing bank on last year’s American Customer Satisfaction Index; and the industry publication American Banker recently announced that it has the lousiest reputation among both customers and noncustomers of any large lender in the country.

Bank of America Corp (NYSE:BAC)

But I was nevertheless surprised at the outpouring of vitriol that our readers heaped on the nation’s second-largest bank by assets in a series of articles that I’ve written of late. In one detailing allegations of abuse under the 2009 Home Affordable Modification Program, or HAMP, readers lambasted the bank for a multitude of slights. “If [Bank of America] were a person it would be in prison,” one reader noted. “I hate that my mortgage was sold to these scumbags,” says another. And a third expressed the opinion that “[Bank of America Corp (NYSE:BAC)] should be shut down for fraud and cheat.”

The same quality of responses was appended to a follow-up piece discussing Bank of America’s performance on the aforementioned American Banker survey. “If I want to ruin my day, all I have to do is call up Bank of America Corp (NYSE:BAC),” one commenter noted. “Bank of America engages in the biggest legal thievery in the USA,” noted another. And “[Bank of America Corp (NYSE:BAC)] takes perverse pleasure in hurting its customers,” said a third.

Finally, though not surprisingly, the vast majority of readers who chimed in continued to unload on the bank in the most recent piece. “I would not use [Bank of America] if they were the only bank in the world.” “[Bank of America Corp (NYSE:BAC)] sucks and must be held accountable for their deceit and unrealistic demands from hard working homeowners!” And last but not least, “I hope that every robber who robs [Bank of America] is successful.”

So, what’s the point? Is the point that both I and the vast majority of our commenting readers take perverse pleasure in kicking Bank of America Corp (NYSE:BAC)¬†while it’s down? Do the comments I quoted above reflect nothing more than the collective opinion of a vocal minority? Are the readers that took the time to share their experiences just a bunch of freeloaders who are unjustly blaming the bank for their own, preventable travails, such as buying a house at the peak of the market, taking on a second or third lien, or agreeing to an inappropriately structured mortgage?

While all of these are legitimate questions, they nevertheless miss the primary issue here. What people should be asking themselves, and particularly those who defend the big banks like Bank of America, is this: Are the nation’s largest lenders intentionally exploiting their overwhelming market share by acting as economic predators? And are they doing so despite the fact that they owe their very existence to a massive multibillion-dollar bailout from taxpayers?

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!