Imagine, if you would for a minute, living in a world where the average worker's salary was higher than the average financial industry employee's annual bonus.

Now you may scoff at such an absurd-sounding statement in today's economic climate, but it's no joke. In 1985, the average annual salary for all workers across the country was, if you can believe this, actually several thousand dollars higher than the average bonus: $19,000 to $13,970. [Disclaimer: I am not making this fact up, it just seems that way].

Over twenty-five years later, the average Wall Street bonus has soared almost 14 times higher. The ratio between average CEO pay and average U.S. worker pay is 319 to 14--meaning that the average worker's salary has essentially been stagnant since the mid-1980s.

It's gotten so bad that bonuses at many bailed out banks greatly outpace the amount of profit generated by the banks. For example, while Goldman Sachs earned $2.3 billion last year and received $10 billion in TARP funds, they paid out $4.8 billion in bonuses--an amount that is more than double their net income. Goldman Sachs has set aside more than $16 billion for bonuses, and big banks that were bailed out by taxpayers have set aside a record $140 million for 2009 salary and bonuses.

The reality is that skyrocketing CEO pay and bonuses have not slowed since our economic crisis hit.

Other facts and figures on wage inequality for Main Street vs. Wall Street that may make your eyes bug out like the crazy but lovable red-headed germ-a-phobic teacher Emma on hit TV show Glee:

• As of 2007, the top ten percent of American earners brought in 49.7 percent of total wages. This is the highest share of total U.S. income made up by the top 10 percent of earners in almost a hundred years, including during the Great Depression.
• During the economic expansion of 2002-2007, the top 1 percent captured two-thirds of income growth.
• Today, the average CEO today makes in one day what the average worker is paid in a year.
• The amount the top five executives at each of the 20 banks that accepted the most federal bailout money received in personal compensation from 2006 to 2008: $32 billion.
• A quarter-billion dollars: The total amount of compensation the 20 CEOs at these bailed-out companies made. When you break it down, the payout "rewarded" to each exec averages $13.8 million.

And last, but certainly not least, there are banksters who claim that big banks using taxpayer funds to pay out massive bonuses and create massive inequality is actually a good thing for the economy.

Don't believe me? Watch this, starting at around 2:50:

Goldman Sachs's Griffiths Says Pay 'Inequality' Helps Everyone

Yesterday the Federal Reserve announced a plan to cut executive pay by as much as 90 percent for CEOs at the seven biggest TARP recipients--companies like Bank of America, Citibank and AIG who have received hundreds of billions of dollars in taxpayer bailouts since their risky deals brought the economy to its knees last year. It's a good start, but it still leaves dozens of other banks that are still taking billions in tax dollars and paying out huge bonuses to their top execs.The sweeping move by the Fed comes right before the bankers' association meeting in Chicago from the 25th through the 27th, where thousands are going to gather in the largest demonstration against bank greed since the financial meltdown began.

Last Friday, we delivered a letter to the Obama administration's pay czar, Kenneth Feinberg, telling him to stop payment on Ken Lewis' outrageous compensation package until Bank of America cleaned up its act. The letter was signed by more than 11,000 of you, demanding a halt to CEO bonuses until banks stopped using our tax dollars to lobby against financial reform.

Today, the pay czar announced that he is taking action on Ken Lewis' outrageous compensation, asking for a stop to any salary or bonuses for 2009:

In fact, Mr. Lewis will have to repay the North Carolina-based bank more than $1 million in salary he has already earned.

The move was demanded by Kenneth Feinberg, the U.S. Treasury Department's special master for compensation, and was agreed to by Mr. Lewis and the bank. Mr. Feinberg's rationale is based largely on the fact that Mr. Lewis will leave the firm with a package of retirement benefits and other stock awards worth between $69.3 million and $120 million, these people said.

Clearly, Ken Lewis is not going to walk away a poor man. He's still going to take home more than you or I will ever make in a lifetime. But, after thousands of us demanded action, the pay czar is using his power to clamp down on Bank of America's out of control payouts.

It's a start. The problem is, every other headline in today's Wall Street Journal is about soaring profits and record bonuses for America's big banks. For them, the party's just getting started.

For us, the picture is much more bleak. You don't need a newspaper to figure that out. In every community, foreclosures continue to rise, families are declaring bankruptcy, and banks are blocking any attempts to fix the problem.

Today's announcement makes me feel good about our power to make a difference. Let's take the next step and tell banks we're not going to let them get away with this.

Click here to demand a meeting with the banks next weekend in Chicago.

It's been a little over a day since we invited people to sign on to Anna Burger's letter to the Obama pay czar, asking him to stop payment on Ken Lewis' bailout until Bank of America agrees to clean up its act. Already, more than 10,000 taxpayers have signed the letter, demanding accountability from America's bailed out banks.

Thanks to the overwhelming response from all of you, pay czar Kenneth Feinberg is going to get the message loud and clear - even before we deliver the letter. News outlets from Reuters, to the Consumerist, to the Huffington Post are reporting on our action; and Feinberg is expected to make an official ruling on Ken Lewis' compensation before the end of this month.

Ken Lewis may be the poster boy for big bank greed, but he's not alone. We've got to make sure every CEO and every financial institution that takes our tax dollars is held accountable for their actions. It's as simple as that.

The Onion, America's Finest News Source, has nicely summed up the various mistakes that caused Ken Lewis to step down as CEO of Bank of America. Some of the highlights include:

• Mailed out millions of checks that incorrectly read "Bank of Armenia"
• Bank of America cash registers consistently $10 short on his shift
• Worldwide economic collapse

It's pretty funny. But it would be easier to laugh if 1. Lewis' actions hadn't hurt so many Americans and 2. Ken Lewis wasn't collecting a $126 million payout on the way out the door - despite his horrible performance as CEO.

If you haven't already, you can sign Anna Burger's letter to the Obama administration's pay czar and tell him to stop payment on Ken Lewis' bailout until Bank of America cleans up its act: http://seiu.org/stoppayment.

Ken Lewis is on his way out at Bank of America. But not without one more parting gift from all of us.

Despite helping to drive us into one of the worst financial meltdowns in history, it's been revealed that Bank of America plans to send Ken Lewis out the door with a $53.3 million pension on top of the hundreds of millions he's already made during his failed tenure as CEO.

We're the ones paying billions in tax dollars to bail out Bank of America for the mistakes Ken Lewis made. We shouldn't let him take one more penny of our hard-earned money.

The Obama administration has appointed a 'pay czar,' Kenneth Feinberg, to make sure our tax dollars aren't being used to pay outrageous earnings to bank CEOs.

Will you tell the pay czar to stop payment on the Ken Lewis bailout? http://seiu.org/stoppayment

SEIU Secretary Treasurer Anna Burger will be delivering a letter to Mr. Feinberg, asking him to withhold Lewis' absurd compensation until Bank of America agrees to stop hurting our communities with reckless financial practices. But we want you, as a taxpayer, to sign on to the letter before we deliver it to Mr. Feinberg: http://seiu.org/stoppayment

The changes we're asking for are simple - and they're necessary to stop greedy banks from driving us toward another financial meltdown. Help make sure Ken Lewis doesn't get another dime of our money until Bank of America cleans up its act.

Sign on to Anna Burger's letter at http://seiu.org/stoppayment

P.S. It's not just Ken Lewis. CEOs at all the major banks are continuing to rake in millions, but they've done nothing to fix the problems that got us into this mess. Help us put them all on notice by signing the letter to pay czar Kenneth Feinberg.

Yesterday, Americans were given one more reason to look forward to ringing in the New Year: Bank of America CEO Ken Lewis announced he will be be stepping down from the bank, effective Jan. 1, 2010.

As a part of the Take Back the Economy coalition, SEIU and partners have been calling (loudly and persistently) for Lewis' ouster for several months. Throughout the economic crisis, Lewis has been a virtual poster boy for a financial industry fueled by reckless and self-serving lending practices, platinum bonuses, and a disregard for workers and our economy.

BofA received access for up to $195 billion in taxpayer bailout funds--and the workers, consumers and taxpayers footing the bill for Ken Lewis' failed gamble finally decided to stand up and demand change, with SEIU leading the charge. "Bank of America CEO Ken Lewis just doesn't get it," we wrote in an e-mailto supporters at the time. "The era of greed and irresponsibility is over...Enough is enough. Bank of America must fire CEO Ken Lewis."

Through a grassroots and online-driven campaign, over 100 events were held across the nation against Bank of America and more than 90,000 taxpayer proxy cards were collected & delivered at BofA's annual shareholder meeting, calling for the firing of Lewis for his corporate greed, corruption and anti-worker company policies. In addition to the ouster, SEIU demanded that two new BofA board seats be created. We called for all bonuses for execs be eliminated until taxpayers were paid back the money the bank received under TARP and demanded stronger whistleblower protections for any workers who report abusive lending or banking practices. Finally, we called for Bank of America to provide healthcare coverage to all of its 247,000 workers-- which it currently does not.

As a result of the organized campaign from union members and thousands of supportive activists, Lewis was ousted as chairman following the April 2009 annual BofA shareholders meeting (re-live that celebratory moment here). Even though Lewis stayed on as BofA CEO until his announcement yesterday, his ousting as chairman sent a message calling for CEO accountability loud and clear.

Even as the end of Lewis's profit-driven rein as CEO of BofA is finally in sight, we're not planning on letting up on our efforts to bring change to the banking industry--not even close. As SEIU's Anna Burger points out, "The Ken Lewis banking model continues drive up big bank profits while causing millions of Americans to lose their jobs, their homes, and their retirement savings." We've had enough of an economy that works only for greedy CEOs like Ken Lewis--and on that note, we thought we'd celebrate Lewis's ousting by taking a detailed record of his failed leadership. Like the saying goes, those who cannot learn from history are doomed to repeat it.

No. (That answer came pretty easily to us!)

On Thursday, bailed out banks like Bank of America--which have not paid back their billions in taxpayer-funded bailouts--had to submit proposals for executive pay and bonuses to Obama's pay czar, Kenneth Feinberg. Feinberg said yesterday that he has broad and "binding" authority over executive compensation, including the ability to "claw back" money already paid...."I have the discretion, conferred upon by Congress, to attempt to recover compensation that has already been paid to executives not only in these companies, but in any company that received federal assistance," said Feinberg.

As Obama's pay czar is weighing how and whether to use that power, we're hoping he takes into account the laundry list of reasons why Bank of America CEO Ken Lewis and other top banking executives don't deserve bonuses this year. We've laid out our "Top Ten" here.

#1: Bank of America has received nearly $200 billion in taxpayer bailouts and backstops.
As long as Bank of America is reliant on billions of taxpayer bailout funds, they should not be allowed to pay out bonuses to top executives while millions of Americans continue to lose their homes, jobs, and retirement savings.

Read all ten (after the jump).

On Monday, the SEC slapped Bank of America with a $33 million fine for misleading investors on plans to award multi-billion dollar bonuses to Merrill Lynch executives during BofA's purchase of the failed bank. In case people are keeping track...this fine is less than one percent of the $3.6 billion in bonuses paid out. SEC officials say this is the largest penalty ever imposed for a failure to disclose relevant information in connection with shareholder votes.

Bank of America has agreed to settle, without admitting to the charges. The bank also has yet to pay back $45 billion in bailout funds of taxpayer money. "This is further proof that bank executives will do anything to pay themselves bonuses and stick it to taxpayers, shareholders and workers," said SEIU's Stephen Lerner in USA Today .

Wouldn't it be nice if all of us could solve our problems the BofA-way?

As part of their "Morris on Campus,™ Life According to an Upperclassman™" campaign to "educate and empower students to take control of their finances," Bank of America sponsored a survey last summer that found 38 percent of surveyed college-aged students reporting they could use help in managing their money. Four in ten (42 percent) students reported to overdrawing their checking account.

The irony here is almost too much to bear...Bank of America knows a thing or two about spending money they don't have. It's suffice to say that these students (like BofA's promotions poster child Morris) would probably be thrilled to be granted the same pardons as BofA. Imagine what that scenario would look like if we all lived under the same skewed logic BofA decision makers seem to be adhering to..."I owed thousands and thousands in student loans but walked away after earning my college diploma owing just 1 percent!" The same goes for the millions of people who owe money to their credit card companies. Or their health insurance companies.

Christmas come early? News reports today suggest that this latest failure by Bank of America could be setting the stage for CEO Ken Lewis's departure. In spite of all the hurt they've heaped onto our economy, there's really been no holding banks accountable for their shortsighted practices and failing to live up to their responsibilities to taxpayers who bailed them out in the first place. Kicking Ken Lewis to the curb would be a good start.

Congress took a step towards cracking down on corporate and big bank CEO pay today, as the House passed the Corporate and Financial Institution Compensation Fairness Act of 2009 by a 237-to-185 vote. Today's vote to restrict risky compensation and bonuses would apply to any company with more than $1 billion in assets. It follows mind-boggling report on Thursday that nine of the country's biggest banks--all receiving billions of dollars in bailout funds--had 'awarded' roughly 4,800 million-dollar-plus bonuses.

Today, the average CEO today makes in one day what the average worker is paid in one year. Employment compensation for workers in this country has grown over the past 12 months by the lowest amount on record--a stark reality that stands in direct contrast to the skyrocketing CEO pay and bonuses that have not slowed since our economic crisis hit. Here's a visual to help illustrate our point:

The Penthouse View vs. The Main Street Reality

Bonuses at big banks have even outpaced earnings. CBS News reports that while Goldman Sachs earned $2.3 billion last year and received $10 billion in TARP funds they paid out $4.8 billion in bonuses--more than double their income. "America is not living up to its promise when one of the architects of the economic crisis gets paid billions in bonuses for his failures while his employees take home wages barely above the poverty level," said SEIU President Andy Stern.

The House passage of the bill is an important step to correct the enormous disparity between those at the top and regular working Americans, but much more needs to be done to help Main Street recover. SEIU is calling on lawmakers to pass the Employee Free Choice Act as an essential way to rein in reckless CEOs and corporate greed and speed up economic recovery.

Can you sign our letter to CEO Ken Lewis demanding answers for bank employees? Click here to add your initials to our letter to CEO Ken Lewis.

It was widely reported this week that Bank of America is seriously considering the elimination of up to 10% of the bank's branches, with CEO Ken Lewis discussing the proposal with investors. If those reports are true, that means the jobs of up to 5,000 bank employees at hundreds of Bank of America branches are at risk.

If you are a Bank of America employee, we need you to add your initials to our letter to Ken Lewis.

"It is absurd that no matter what happens in the economy these guys figure out a way to award themselves with enormous bonuses and there seems to be no problem with laying off workers," said SEIU's Stephen Lerner. "On the one hand the government is trying to stimulate the economy by pumping money into banks. But everything these banks are doing exacerbates the problem that they are supposed to be solving."

Bank of America employees need answers to questions about these drastic closure plans--at the very least, information about how they could be affected by branch closings. "There has been no communication with workers, as far as we have talked to, about what is happening, what their rights will be, if they get severance pay, if there will be buyouts, if their health care will be continued...And most importantly, there has been no discussion if they will take the money they pay in bonuses and move it to help their workers survive unemployment," said Lerner.

So, we decided to do BofA a solid by writing a letter to CEO Ken Lewis with several questions he should answer for his employees. Here's part of the letter to Lewis:

A spokesperson described this proposal as part of the "long-term direction of the company." But with families facing continued financial uncertainty, we believe this is the wrong time to eliminate the jobs of 5,000 workers and leave millions of our customers without the financial advice they need to get through this crisis.

We deserve answers to the following questions on your closure plans and the "long-term direction of the company."

  1. How many current Bank of America employees' jobs will be eliminated?
  2. Will laid off bank employees receive any severance pay?
  3. Will you give bank employees a say in how you close branches?
  4. Will you and other bank executives continue to accept bonuses after laying off thousands of workers?

If you want answers to these questions, we need your support for our letter to CEO Ken Lewis--click here to add your initials to our letter.

As the backbone of Bank of America, frontline bank workers helped drive the growth of the company for low wages, while executives took home huge paychecks and bonuses. Take CEO Ken Lewis, for example: while the bank crashed, he made $6,019 an hour. In the last three months alone, Bank of America made more than $3 billion in profits. And according to a newly-released report by NY Attorney General Andrew Cuomo, BofA also issued $3.33 billion in cash and stock bonuses to executives last year. Merrill Lynch, which merged with BofA in January, issued $3.6 billion in bonuses despite having losses of more than $27 billion. This means that combined, the banks had 860 employees who were each given bonuses worth at least $1 million.

But that's not all....Bank of America has spent an additional $1.5 million in lobbying fees since January 2009. Does that sound right to you?

Even though taxpayers are backing Bank of America with $199.2 billion, it's the front-line bank workers who are going to hurt the most. But you can do something about it. Sign our letter to Lewis and demand answers about bank branch closures.

Watch this live broadcast now of Bank of America workers and SEIU's Stephen Lerner on GRITtv discussing how the bank's practices hurt consumers, employees, and our economy. « More on how BofA "encourages" its employees to help consumers rack up debt, as well as BofA workers speaking out about the bank's anti-consumer practices.

A new report released by SEIU today shows that Bank of America has cut small business loans made through the Small Business Administration (SBA) 7(a) program - despite taking billions in taxpayer-funded bailouts meant to stimulate the economy.

At a time when the failure rate of small businesses has been on the rise, Bank of America has - and continues - to reduce the amount it lends in SBA loans while increasing higher-interest credit card lending to small businesses. The result is less capital to support struggling small businesses and boost the economy.

Here's a quick look at the facts about Small Business Loans at the Bank of America.

FACT: Bank of America Cut Lending to Small Businesses AFTER Taking Billions in Bailout Money to Stimulate the Economy - Latest Cuts Came on Top of Years of Decreased Lending

• Not only did Bank of America cut small business lending after taking billions in bailout funds, but the bank lent out significantly less money to small businesses than many of its top competitors - under the SBA 7(a) program the Small Business Administration's main loan program.
• The average loan amount was comparatively small. In FY 2008, the average loan amount for all SBA 7(a) lenders was $182,492. At Bank of America, the average loan amount was only $31,032.

FACT: Bank of America Cut SBA 7(a) Loans by 90 percent -- Twice the National Average

• Over the past two years, Bank of America's small business lending has decreased from more than 10,000 SBA 7(a) loans to fewer than 500. The greatest decline occurred after the bank received bailout funds last October -- money intended to jump start lending.
• In the first seven months of FY 2009 (October-April), the bank made only 241 loans through the SBA 7(a) program, worth a total of $10 million. In the same time period last year, the bank made 3,053 SBA 7(a) loans, worth $92 million.

FACT: Bank of America Cut Small Business Lending in States

• In FY 2007, Bank of America lent more than $335 million to small businesses in 44 states through the SBA 7(a) program. In the first seven months of FY 2009, the bank cut SBA 7(a) lending completely in 14 states.
• Cuts were most severe in states like Arkansas, where the bank made 49 SBA 7(a) loans worth $1.4 million in FY 2007, and made zero in the first seven months of FY 2009, and in three New England states (Maine, New Hampshire, and Rhode Island), where the bank went from making 109 loans worth $2.8 million in FY 2007 to zero to date in FY 2009.

FACT: Bank of America Pulled a Bait and Switch, Shifting Small Business Portfolio from Traditional Loans to Higher-Interest Credits Cards

• Instead of lending money to small businesses through SBA loans (with typical interest rates of 7-9%), Bank of America appears to be moving its small business clients to higher-interest credit card loans. (Credit cards typically charge small businesses 16-23%.)
• In 2007 (the most recent year for which this data is currently available), more than 75% of Bank of America's small business loans were made through FIA Card Services, its credit card division. Bank of America acquired FIA (previously called MBNA) in January 2006. FIA's small business loan volume increased nearly 400% between 2006 and 2007. The $6.3 billion increase in the bank's total small business lending between 2006 and 2007 came almost entirely from the bank's credit card division.

FACT: Bank of America Hurt Small Businesses and Shareholders with Risky Lending Practices

• Bank of America shifted its loan portfolio - favoring "Express Loans" with lower underwriting standards - despite the fact that these loans are guaranteed by the SBA at a lower rate and have been found more likely to default. From FY 2006 through FY 2008, more than 95% of Bank of America's SBA 7(a) lending was through the SBA Express program, saddling shareholders and communities with unnecessary risk.
• Reminiscent of the mortgage crisis, small business defaults have risen. In fall 2008, Bank of America announced that its small business default rate had doubled to match the national rate and possibly exceed it, going from 6% in 2007 to 12% (annualized) in 2008. Bank of America's Chief Financial Officer Joe Price described the bank's small business lending as performing more like consumer debt than commercial lending. CEO Ken Lewis more bluntly called Bank of America's SBA loan portfolio "a damn disaster."

Read and download the full report "Small Business Lending at Bank of America" here.

Bonuses, bailouts, and a broken system: Is this the America in which big banks and the U.S. Chamber of Commerce believe in?

The Washington Post reports today that Chamber and the banking industry are intensifying their lobbying efforts against financial reform. Recognizing their parallel efforts to fund campaigns against working families, the unappetizing alliance of big bank executives, credit card and financial services companies is joining forces to intensify their lobbying efforts against financial reform. "It's no surprise that the U.S. Chamber and the big banks that drove our economy into the ground are joining forces to defend a failed financial model that enriches CEOs at the expense of shareholders, workers, and our economy," commented SEIU's Anna Burger, on efforts to block the Consumer Financial Protection Agency proposed by President Obama.

Obama's proposed agency would oversee a range of financial products, from mortgages to credit cards and checking and savings accounts to guard against anti-consumer sales practices and fight for needed reforms to protect front-line bank workers and consumers. The coalition fighting the Obama consumer agency plan views their efforts to protect those on the receiving end of multi-billion-dollar taxpayer bailouts as simply "allowing the financial services industry to serve its customers in the best way possible." Um, U.S. taxpayers who've been forced to subsidize banks' bad behavior with billions of their hard-earned money might not agree. The coalition's prescription for financial reform to make their case so far include rebranding the same reckless policies that will drive families deeper into debt and launching a massive PR campaign to scare Americans with 'Harry and Louise' style TV ads.

BofA "encourages" its employees to help consumers rack up debt

This comes a week after current and former Bank of America workers stepped forward to expose harmful anti-consumer practices by the bank that encourage customers to sign up for high-interest-rate credit and cash advance services to max out customer credit, as well as structuring a variety of check and debit card services resulting in overdraft fees and other charges. A former BofA employee from Landover Hills, MD, Gabby Inaleis, said that although initially she thought she was taking financial services job, it didn't take very long to realize BofA had no interest in helping customers reach their financial goals. Under constant pressure from her manager to meet unrealistic sales goals (example: sell at least 40 checking accounts every Friday), Gabby reported she would often sell multiple checking accounts to clients that didn't need them by offering to waive the account fees for a couple of months. "It became standard practice to make a customer who wasn't planning on opening an account wait for up to an hour to speak with a personal banker," she says.

No employee bonuses until grandmothers everywhere are penniless (and cold): Among the former bank workers who spoke out was Chris Feener, an ex-employee with 15 years' experience in the industry who worked in BofA's collections department. The department's #1 priority, said Chris, was to collect payment from customers who hadn't made a payment on their credit card for 180 days--no matter the cost. "There was a time I was encouraged to tell an elderly woman to sell her stove and cook on a Bunsen burner to pay off her credit card debt that [the bank] had inflated over time," said Chris.

The questionable practices BofA employees were made to engage in to ensure their jobs were safe didn't stop there, for Chris and his coworkers. "In 2007 when BofA's numbers were particularly low, we were given scripts to read on our customers' answering machines, threatening to sue them or collect any assets they had if they didn't," he said. "It was called the Maxwell message, and for three months straight we used that method, forcing customers needlessly to file for bankruptcy."

And that's not all! Enter more violations of the Fair Debt Collection Practices Act Chris says he and his team members were pushed to do if a customer had a delinquent account: publicly humiliate the customer to shame them into paying. "We were required to call every customers neighbor on every account--the sole purpose was to embarrass the customer and encourage the neighbor to personally bring a phone note to the neighbor to deliver the messages for us."

The BofA bank workers who shared their stories all acknowledged they felt as though the practices like the ones described above were unethical. But one should not underestimate how powerful the pressure to "sell, sell, sell" can be when it comes from a person of authority, like one's manager--or an entire institution (like Bank of America). Without any real whistleblower protections, most workers are too afraid to speak up for fearing of losing their job--something no one supporting themselves in this dismal economy can afford to chance.

SEIU, U.S. PIRG and the National Association of Consumer Advocates have outlined new protections to ensure front-line bank workers can speak out and create a financial industry that puts consumers and the health of our overall economy ahead of quick profits for bank executives. Read them here. "It's clear that big bank executives and the U.S. Chamber will stop at nothing to stand in the way of real solutions for our economy," says Anna Burger. "That's why it's more important than ever that bank workers be a part of any financial reform package."

The reports are damning.

For the first time, Bank of America workers are speaking out about how the bank's practices hurt costumers and employees.

According to the Associated Press, Bank of America "encouraged" its employees to "burden consumers with debt and enroll them in high-fee programs." Fed up with these unsavory practices, Bank of America workers are speaking out.

Sign our petition in support of protections for bank employees. We'll deliver your petition directly to Members of Congress working on financial reform.

Click here: http://action.seiu.org/bankworkers

What kind of pressure to sell products are employees under at banks like Bank of America? Here's what one former Bank of America employee said:

"From sun up until sun down, six days a week, I was under constant pressure to push products that were usually bad for consumers and were--in my opinion--unethical," said Gabby Ornelas, a former Bank of America Personal Banker from the Washington, DC area.

This is the other, hidden side of the financial crisis: bank employees had no choice but to push products that ended up hurting their customers.

Bank workers say they are routinely encouraged to push products on consumers that maximize fees, raise interest rates, and max out credit cards in order to meet ludicrously high sales goals. Worse, employees report they're told to target students, the elderly, and non-English speakers who are the most at-risk to end up paying huge fees.

Here's what the Los Angeles Times reported yesterday about what Bank of America workers are saying:

The former workers said they were going public to lay out what they saw as a little-known side of BofA's business model: encouraging working-class customers to sign up for high-interest-rate credit and cash advance services and structuring an array of check and debit card services to maximize overdraft fees and other charges.

Bank workers need our help to continue to speak out.

So what can you do?

Congress will soon debate financial reforms to protect consumers - we need to make sure that those reforms also protect employees that sell the banks' products. In addition to giving bank workers a voice at work with legislation like the Employee Free Choice Act, new financial reforms need to protect both consumers from bad products, and employees who blow the whistle on bad practices at banks.

Sign the petition to make sure real financial reform protects both consumers and bank employees from big banks' anti-consumer practices. We'll deliver this directly to Members of Congress working on financial reform.

And if you're a Bank of America employee, please go to LetsTalkBanks.com and share your story about practices you see at work.

Today Bank of America workers are speaking out about BofA's anti-consumer sales practices and failed banking model.

In articles from the LA Times and Associated Press today, current and former Bank of America employees talk about how Bank of America "encouraged" its employees to "burden consumers with debt and enroll them in high-fee programs." BofA employees also allege the bank targets low-income working people and Latinos who can't afford and don't need the products that bury them in debt.

The LA Times reports in a story titled, "Bank of America is accused of exploiting Latino immigrant customers":

The former workers said they were going public to lay out what they saw as a little-known side of BofA's business model: encouraging working-class customers to sign up for high-interest-rate credit and cash advance services and structuring an array of check and debit card services to maximize overdraft fees and other charges.

The AP reports on how these practices in bank branches were the other side of the finanical mess that played out on Wall St.:

Risky bank policies that contributed to the financial crisis were as common in neighborhood branches as they were on Wall Street, according to a labor-backed coalition that will propose new reforms Tuesday.

Bank of America Corp. and other large banks encouraged customer service representatives and tellers to burden consumers with debt and enroll them in high-fee programs, alleges a group which includes the National Association of Consumer Advocates and the U.S. Public Interest Research Group.

The LA Times has more on how Latinos were specific targets of Bank of America:

Ornelas and three other former BofA tellers, all Latina women, said they and their co-workers were repeatedly instructed to seek potential new Spanish-speaking customers outside the bank. Some were instructed to go to embassies where recent emigres often wait in queue for visa and passport services.

Other tellers were asked to go to neighborhood stores, clinics and child welfare centers, and several were asked to recruit customers at a religiously oriented Mother's Day celebration, they said.

This news is extraordinary because current and former employees of Bank of America are speaking out about the anti-consumer practices of the bank and how they hurt consumers, employees, and the economy as a whole.

In a call today with consumer advocates and Rep. Keith Ellison, more Bank of America employees will talk about their experiences with the company and how the bank's practices affect customers.

If you're a Bank of America employee and want to speak out about what you see at work, go to LetsTalkBanks.com and tell us what you think.

Today, Rep. Keith Ellison (D-MN), the National Association of Consumer Advocates (NACA) and the U.S. Public Interest Research Group (U.S. PIRG) will join Bank of America workers to speak out against predatory sales practices and a failed banking model and call for reforms that protect frontline bank workers and consumers.

Bank workers have had enough with the unrealistic sales decisions made at the top that hurt customers. But without a voice on the job and strong whistleblower protections, bank workers are unable to speak out publicly about being forced to push harmful products that lead to increased fees and financial traps for customers.

A story today in the AP quotes Stephen Lerner, who runs SEIU's financial reform project:

"One of the core parts of the economic collapse is a business model that encourages too much risk or short-term profit over long-term stability."

Lerner said employees under pressure to sell high-fee products ended up targeting vulnerable populations, including students and the elderly.

Rep. Ellison, SEIU, NACA, and U.S. PIRG will outline new protections for frontline bank workers to create a financial industry that puts consumers and the health of our overall economy ahead of quick profits for bank executives.

Stay tuned for how the call went later today.

There are two storylines that Bank of America has been pushing about its decision to go through with the Merrill Lynch acquisition, even after it became clear that Merrill was facing billions in losses. The first paints Bank of America as a martyr that decided to bite the bullet and go through with the deal in order to save the broader economy from collapse. The second is that BofA was forced into a shotgun wedding by federal regulators. But recently released emails from Federal Reserve officials raise questions about both of these stories.

As for the notion that BofA returned to the taxpayer trough for a second serving of bailout funds in order to save Merrill and prevent a larger financial catastrophe... According to the Washington Post, the Fed's internal emails show that "the government did not just move to rescue the Merrill Lynch acquisition -- officials also needed to rescue Bank of America," whose "own health still was in a downward spiral. Regulators calculated more than half the decline in Bank of America's capital reserves was the result of internal problems..."

Far from being Merrill's heroic savior, these events raise the question: Did BofA use Merrill as a crutch to garner public sympathy for another taxpayer handout? Or perhaps something even more cynical. The Washington Post reports that when BofA CEO Ken Lewis testified before a Congressional committee on June 11th, "Democrats pressed Lewis to acknowledge he had threatened to leave a major investment bank to a grim fate as a gambit to get public money" (more on that below).

Which brings us back to that second storyline -- the shotgun wedding.

Yesterday the U.S. Chamber of Commerce saw fit to stand up for Bank of America's disgraced ex-Chairman and current CEO Ken Lewis. Lewis testified to the House Oversight Committee about the bank's purchase and subsequent bleeding of Merrill Lynch.

It's no secret that Ken Lewis set his sights on expanding Bank of America's reach as far as it can go - BofA bought Merrill Lynch despite the firm losing $35 billion in the previous two years. The House committee held the hearing to investigate the acquisition, which allegedly led to Bank of America needing another $20 billion bailout at the end of 2008.

So despite the obvious public image problems of Bank of America, and Ken Lewis's feet being halfway out the door of BofA, the U.S. Chamber of Commerce decided to stick up for both Lewis and BofA. The Chamber writes:

Exploring the facts should shed light on the actions of all parties at a critical juncture in the history of our capital markets, and demonstrate that despite circumstances regarding the deal's execution, had BofA not purchased Merrill Lynch, instability in the financial system at the time could have been far worse.

Ah yes. "Circumstances regarding the deal's execution." That's probably Chamber-speak for "failing to disclose $12 billion in loses." You know, no biggie. That's chump change over at the Chamber.

This isn't the first time the U.S. Chamber has stuck up for its buddies at Bank of America. At the end of last year, while the economy collapsed and BofA took on its first $25 billion bailout, the U.S. Chamber saw fit to honor Bank of America with its "2008 Corporate Citizenship Award." Because nothing says "Corporate Citizenship" like milking taxpayers for unprecedented billions.

Of course, there's also the little matter of failing to say whether or not the U.S. Chamber is using Bank of America's bailout money to fight working families. Politico reports:

Adam Green over at OpenLeft pushes the Chamber of Commerce to say that they're still accepting dues from bailed-out companies.

The goal is to make the case that the Chamber is using taxpayer dollars to help fund their anti-EFCA campaign (of which they have launched new ads targeting moderate Democratic senators).

The Chamber's Brad Peck says they're not using bail-out money for the campaign.

I've asked how exactly they know that to be the case.

Crickets from the Chamber since then.

So, U.S. Chamber of Commerce: are you using Bank of America's bailout, or any other bailout for that matter, to fund the fight for your legislative priorities?

We'll wait patiently for a response. In the meantime, we'll keep up the fight to hold Bank of America - and the U.S. Chamber - accountable to the American taxpayers.

Ahead of Bank of America CEO Ken Lewis' testimony before the House Committee on Oversight and Government Reform, we put together the top ten questions that employees, consumers, taxpayers and shareholders would like reporters and legislators to ask Ken Lewis.

"SEIU hopes members of the Committee are as tough on Ken Lewis as we would be if we could get him under oath and the bright lights," said SEIU Secretary-Treasurer Anna Burger.

Here are the top 10 questions to ask Bank of America CEO Ken Lewis:

1. How can you commit to pay for former Countrywide CEO Angelo Mozilo's legal defense--"a million a month" according to Bloomberg--while Bank of America announced layoffs for 35,000 employees and refuses cost-of-living raises for its lowest-wage workers?


2. Why do you nickel and dime your lowest paid workers (tellers earn $10.50/hour without access to affordable health insurance) at the same time you shower lavish perks and deals for executives and traders?


3. As Bank of America employees speak out about unpaid overtime and a predatory sales culture, what do you plan to do to improve employment practices?


4. 4. Given dismal economic performance, low-staff morale, and a core business model of pushing debt on consumers, what has Bank of America done to meet its stated goal of being "the world's most admired company?"


5. After reportedly receiving tax breaks, and more than $195 billion in bailouts, government guarantees, and taxpayer-funded healthcare for its workers, what is Bank of America's plan to reduce its dependence on the U.S. taxpayer?


6. After being bailed out by hard-working taxpayers facing the toughest economic times since the Great Depression, do you think it's right for Bank of America to lobby against laws that would helps working families--like the Employee Free Choice Act, healthcare reform, and credit card reform?


7. As you argue against any laws that would create greater transparency in the industry, could you tell us what other calamities on your books you are hiding? First it was the Merrill Lynch deal--what's the next shoe to drop?


8. During your time as CEO, at what point did cutting costs and gouging customers with unnecessary products and skyrocketing fees become more important than customer satisfaction?


9. At a time when people are struggling, have you considered lowering banking and overdraft fees that are already higher than many other non-bailed-out banks?


10. Why do you create incentives for Bank of America employees to push further debt on customers?

"Ken Lewis was at the center of Bank of America's disastrous 'bigger at any cost' model of banking," said SEIU Secretary Treasurer Anna Burger. "Today, as Bank of America stock prices have dropped by more 90 percent and after the bank received access for up to $195 billion in taxpayer bailout funds, workers, consumers and taxpayers are footing the bill for Ken Lewis' failed gamble."

"Now, Bank of America workers have started speaking out and demanding change. Enough is enough. It's time for Bank of America and Ken Lewis to do what's right and spell out steps to become a partner for America's families instead of a toxic asset."

Tomorrow, Bank of America CEO Ken Lewis will face tough questioning in his testimony before the House Committee on Oversight and Government Reform at 10:00 a.m.

He'll be asked about his role in the acquisition of Merrill Lynch, the excessive bonuses paid to Merrill executives and the billions that taxpayers have provided to bail out the country from the deep losses and economic damage Bank of America's decisions caused. This will be Lewis' first trip to Capitol Hill since Bank of America failed the federal government's stress tests and a coalition led by SEIU delivered nearly 100,000 "Taxpayer Proxies" demanding that the Bank fire Ken Lewis.

Tomorrow, will Ken Lewis....

a) Apologize for his bank's role in bringing down the economy?
b) Commit to transparency and real financial reform?
c) Commit to ending consumer abuses like exorbitant overdraft fees, predatory financial practices, and the bank's irresponsible lending and acquisitions?
d) Commit to providing affordable healthcare for all employees?
e) Stop lobbying against solutions--such as banking reform and pro-worker legislation like the Employee Free Choice Act--that would give bank workers a voice on the job, protect consumers, end corporate excess, and finally build an economy that works for everyone?

We'll hopefully find out the answers to these questions after tomorrow's testimony. In the meantime, let us know your thoughts---do you think Ken Lewis will do the right thing in in his testimony and commit himself/Bank of America to being a partner (instead of a toxic asset) in rebuilding our economy?