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Download our complete report on Bank of America (PDF).

bofapaper.jpg Bank of America received $25 billion in federal taxpayer bailout funds, but still hasn't made economic recovery a priority.
  • Less lending. A company spokesperson admitted at a November Senate hearing that BofA is "lending less than we were a year ago." Recent reports indicate that the company has pulled back its consumer lending, raising rates on existing credit card balances and cutting lines of credit even for creditworthy borrowers.
  • Layoffs. BofA recently announced plans to eliminate up to 35,000 jobs over the next three years in what would be one of the largest rounds of layoffs in the history of the financial services industry.
  • Low wages. At its branches, BofA has a record of paying low wages to its tellers. According to a salary survey by PayScale.com, the median salary of BofA bank tellers was $23,597 a year as of December 28, 2008. By comparison, Lewis took home $99.8 million in 2006, more than four thousand times as much as a BofA teller.
  • Corporate excess. Major expenditures included foreign investments, dividends to shareholders, corporate jets, even $10 million in fees to Washington lobbyists.
  • Displacing homeowners and families. One of the leading banks opposing national legislation that re-write U.S. bankruptcy laws and help troubled mortgage borrowers avoid foreclosures.
On top of this, they're costing taxpayers even more money.
  • Letting taxpayers foot the bill for health care. In Massachusetts alone, more than 1,800 Bank of America workers received Medicaid at an estimated cost to taxpayers of $2.5 million.
  • Charging cash-strapped states high fees and interest for bonds. Bank of America collected $2.4 million in fees from California's bond sale last fall alone, including a $400,000 "management fee" for leading the sale. This contributed to California's cost of borrowing jumping from $5.40 to $23 for every $10,000, a huge cost of a cash-strapped state.
It's time for Bank of America to use the stimulus money to make the economy better and provide health care for its 247,000 workers--or give the bailout money back. Bank of America should also:
  • Keep over 12,000 troubled borrowers in their homes with executive bonus money
  • End the practice of unilaterally changing credit cardholder agreements.
  • Sign new leases with renters who live in buildings that are being foreclosed upon
  • Commit to providing affordable healthcare to all of its employees and their dependents.
  • Strict enforcement of whistleblower protections to workers who report bank fraud and predatory practices
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