Shining A Light on Ken Lewis' Record of Failure

• Bank of America employees assert their pay and job security are tied to predatory sales and driving consumers into debt. SEIU's conversations with bank employees reveal compensation and quota systems built around selling products consumers don't need or can't afford. These are the predatory practices that led to the mortgage crisis, and the overabundance of credit card debt. SEIU is committed to overhauling these compensation practices and winning protections for frontline bank workers. Read more about SEIU's campaign with bank workers, consumer groups, and Representative Keith Ellison. More press coverage at Associated Press, Reuters, and the Los Angeles Times.
• In an unprecedented show of no confidence, shareholders ousted Ken Lewis
  as Chair of the Board. It was a rejection of Lewis' policies that contributed to America's economic collapse and followed demands of SEIU-sponsored demonstrations in
  nearly 100 cities and an online campaign to collect and deliver nearly 100,000 taxpayer proxies from across the country for shareholders to fire Lewis. Read Anna Burger's letter to the new Chair demanding further action on taxpayer demands.
• SEIU uncovered details that despite receiving bailout funds to expand
  lending, the bank continues to decrease small business lending. As the failure rate of small businesses continues to rise, Bank of America has--and continues--to reduce the amount it lends in Small Business Association loans while increasing higher-interest and higher-default credit card lending and a risky Express Loan program. Bank of America cut SBA 7(a) loans by 86 percent--nearly three times the national average. The greatest decline occurred after the bank received bailout funds last October--money intended to jumpstart lending. Read SEIU's report here.
• Ken Lewis kept details of Merrill Lynch's poor health and plans of multi-billion dollar bonuses from shareholders. Bank of America continues to face investigations and legal action for misleading shareholders about commitments to pay Merrill Lynch executives up to $5.8 billion in bonuses during Bank of America's purchase of Merrill last year. With this money, Bank of America could have given each of its bank tellers an estimated $168,000 raise, nearly seven times their median salary.
• Ken Lewis' profit model relied on squeezing consumers for billions in fees. In the first half of 2009 alone, Bank of America collected over $10 billion in credit card and bank account fees, accounting for 70 percent of its total profits. In fact, the bank recently agreed to pay $35 million to settle a class-action lawsuit that claimed the bank manipulated customers' bank accounts to increase overdraft fees.
• Following billions in bailouts and backstops funded by taxpayers, Bank of America refuses to help struggling homeowners save their homes. Bank of America was classified as one of the worst performers among the biggest U.S. banks in modifying loans for struggling homeowners, according to a recent Treasury Department report.
• While paying out billions in bonuses, Bank of America has cut more than 34,000 jobs over the past five years. Last December, the bank announced it would lay off an additional 30,000 to 35,000 workers over the next three years. This past July, BofA announced they were seriously considering the elimination of up to 10% of the bank's branches.
• Despite taking taxpayer money, the bank continues to spend millions lobbying against pro-working family legislation. Just three days after receiving $25 billion in federal bailout funds, Bank of America was caught holding a conference call with clients to organize opposition to the Employee Free Choice Act and fundraise for those efforts. Together, Bank of America and Merrill Lynch spent more than $12 million on lobbying in 2008. The bank opposes President Obama's financial reform efforts and lobbied against bills like the Credit Cardholders Bill of Rights and the Foreclosure Prevention Act of 2008.

• Bank of America has pushed the cost of their employees' healthcare on to taxpayers. Bank of America has made taxpayers pick up the tab for approximately $50 million a year in employee health care costs because many Bank of America workers cannot afford the company's health insurance and must rely on state-subsidized healthcare programs.

More research on BofA's bad business and consumer practices at www.seiu.org/bankofamerica.

Tomorrow, hundreds of students, clergy, and veterans will march in Charlotte, NC on Bank of America and other banks to demand an end to predatory lending practices and skyrocketing interest rates and fee, and demonstrations are being planned in dozens of cities in advance of the Chicago meeting.