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| Rusty Doebler |
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| Regman, You continue to make this statement in many of your posts but it is just not true; "Banks make most of their money from LOANS not deposits. The fees you are charged make a small percentage of total earnings. Overdrafts hurt banks more than help." Well Regman, let me help you better understand the business you have chosen to make a career out of. Here is a quote from an AOL Money & Finance article;
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Where fees were once used as a deterrent from, say, repeatedly bouncing checks or other poor behaviors, they're now big money makers for banks, accounting for 56% of bank income, according to the Federal Deposit Insurance Corp. Banks earned an estimated $80 billion on fees in 2006. Ten years ago, fees accounted for just 3% of bank income.
********* 56% is not a small percentage by any means....in fact, if I remember my 4th grade math accurately, it is actually the majority percentage. AmSouth/Regions is exploiting their customer base, period. All the sugar-coating and misdirection in the world will not change that fact. Article |
| REGMAN |
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| What you are stating is an average of banks combined. have you read the annual report for Regions? I will get one from last year and check. If I am wrong I will say I am.
Loans are the moneymaker for banks. And even if it is fees, so what???
The reason why it has increased are these reasons...and these have been proven.
1) People in recent years have ever increasingly defaulted on their loans, including mortgages with banks.
2) More people than ever do not save and continuously borrow or overdraw on their accounts at more than anytime in history.
3) People more than ever abuse the system, especially with checkcards. Even one of your own posters to this site tried to tell people an easy way to use a checkcard to overdraw their accounts more and leave the bank to settle it.
For these reasons, banks have increase their rates as a deterrant to these actions. Customers can sign up for overdraft protection to avoid fees....for every fee we charge, there is a way to avoid it. If it is bank error, we waive it! |
| REGMAN |
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| Hey Rusty, I found it:
In the historical financial summary for Regions Bank for the 2006 tax year the following is noted in the annual report:
Interest and fees on loans: $3.5 billion dollars
Non-interest income (fees on deposit accounts): $518 million
AS you can see loan fees out-number the dreaded service charges 6-1.
The annual report is usually available to look at online as well as a copy in the branch. Some keep copies, some don't. I do for reference. |
| Rusty Doebler |
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| Regman, I am sorry, but your are grossly mistaken. Again, let me explain to you how your business works. We will start by referencing Regions 2006 financial statement, page 80 (consolidated statements of income) Interest and fees on loans = $4.7 billion dollars. Service charges on deposit accounts = $649 million A quick and inaccurate conclusion of those numbers would indicate you are right. What you fail to understand is that the "courtesy overdraft protection service" which victims are unwittingly tricked into are actually high interest loans provided by the bank to cover customer overdrafts. The interest on these loans by my calculations can reach a whopping 3,600%. This exploitation income is reported under interest income, specifically interest and fees on loans. The FDIC reports that 56% of banks profits come from these overdraft fees. Since the figures are not outlined specifically to the general public, I guess we will have to assume that the goverment agency (FDIC) charged with monitoring the banking industry is correct in it's report. Also, since Regions is now AmSouth in disguise and it is perceived that AmSouth is the absolute industry master at exploiting customer funds, I contend that the 56% of income is low for your beloved bank |
| Rusty Doebler |
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| And one last thing, your post was at 9:49 am on a Wednesday. Stop posting from work. You should be helping customers. |
| REGMAN |
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| I was not at work.
Since overdraft protection is classified as a revolving loan....I guess that just proves more where our money gets made. Customers are well aware of the interest rate when they sign loan papers.
Plus, the bank offers more types of overdraft protection than just that. If you get overdraft protection, and the bank forwards you $100.00, the interest charges is about .04 cents for that day....of course it grows the more you overdraw, but that is when the customer needs to decide how far they want to go.
I like how you corrected me, however It looks I am still right. I really like the way you changed your arguement to target overdraft funds sense I proved you wrong.
High interest rates on overdraft protection or any loan are charged to those who credit is not as high. Those who have good credit earn a better rate for their fiscal ability. You can attach a credit card from Regions, which if you qualify is only 7.9% APR with good credit....tell me that ain't a bad deal for overdraft protection.
What else you wanna throw at me? |
| REGMAN |
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| Oh by the way, I said tax year 2006, based on 2005 numbers. Check your Annual report and look under 2005. I guess I was right.
This goes to show that what you have tried to say in the past has been wrong on many levels. You should not compare Regions and other banks in one lump sum.
Under the new Regions, overdraft fees charges by AmSouth were REDUCED to $32.00. Regions is also in the process of offering overdraft protection based on a tier. Those people who rarely overdraw their accounts pay less than those who frequently do.....WOW! How stupid of us to actually do that....I mean, how are we going to make money now????
Oh yeah, thats right....we make our money from loans... |
| REGMAN'S MOM |
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| Son - how would you know about making money on loans.... you know that you told me over dinner last night that you don't even know how to make one. You send them to someone in Nashville at the Lending Center and they make decisions for you and tell you what you can and can't do... Haven't I raised you better than to try and pretend you are a banker when really you are just one of the countless order takers at the new McRegions??
Shame on you |
| REGMAN |
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| Oh MOM,
Undoubtably you have been sleeping around with old man Winters again when you should have paid attention. Yes, it is a centralized loan system, HOWEVER branches have the ability to override an rate with authorization. I myself, yes Mom, myself, have done this....maybe if you were not drunk half the time in the backyard you would have known.
The branch can request a rate change on the loan, if it is still not approved, you can get your local CSM to override centralized loans.
Poor Mom, I guess I need to put you in a home now.... |
| Fleeced |
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| I am just tickled to find this site and to see these Regions weasels on the defensive. |
| Regman's dad |
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| Dear Regman,
You did not override a rate unless you are an area executive. PERIOD. I know this for a fact. Also, my little brainwashed Regman, hope you have noticed that your pathetic bank's stock has sunk under $20 a share. BWAHAHAHA
By the way, thank you so much Ramsouth for all the call events that you had during 2007, in which you literally SHOVED equity asset lines down customer's throats. Not only did you shove new loans down customer's throats, but, you begged your current customers to increase their current lines of credit. Thank you for doing everything in your power to add to the credit crisis. You do make money from your loans, (or did), now get ready to pay-back $360,000,000 (and most likely more) for all your equity asset line SOLICITATIONS! You are a joke! You were once a great bank, until the crooked organization known as SCAMSOUTH decided to run you into the dirt. The sad part is, is that you allowed them. Truly Pathetic. |
| tendalovnpeaches |
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| Would Regman's first name happen to start with a P. Just curious. Somehow I stumbled across this. Might be related. |
| Regman's former boss probably. |
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| Actually banks make a ton of money off of deposits. They turn around and lend these deposits out...so you can factor a portion of the interest on loans back into the deposit category since the deposits feed the loan demand.
Also, banks turn around and park deposit excesses with the fed and make a nice return.
Right now Regions is starving for deposits because they know they over extended themselves on loans with all these call nights cramming helocs down people's throat. I love watching it, they get what they deserve for making their employees stay late every other week to call poor blue hairs for equity lines. |
| blah |
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| Banks do not make near as much from loans (deposits actually cost them) as they do from bank fees charged to their accountholders.
You state that banks make most or their money from deposits and the loan opportunities created from those deposits. If you are looking at it from an "instrument" point of view, this is way off for the simple reason that Regions can only realize a profit on loans equal to the difference they charge to loan the money (i.e., the interest) vs. the interest paid on the deposit and overhead to maintain both the loan and deposit. While a loan may generate 7% or greater percent, there are also considerable overhead associated with the loan not including the interest the bank has to pay the depositor.
Bank fees on the other hand have no such overhead, and incur no reciprocal cost...they are far more profitable, and highly used at banks. Regions takes it a step further in building policy and systems to maximize this profit at every opportunity.
I bet its far easier to get a bank fee than a bank loan at Regions. |
| Steven Kehren |
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| AmSouth left 1 penny in an account I closed, causing an oveerdraft I was unaware of as I left, tried to open new acccount and was told I had a chargeoff and could not because of AMSOUTH |
