Bank of America backlash continues

Bank of America

October 21, 2011 7:03:47 AM PDT
Bank of America's latest profit report has some customers shaking their heads following last month's news of new fee for debit cards.

The company says it earned over $6 billion in the third quarter. It reported a $7 billion loss in the same period last year.

The news was fresh fuel for critics who've targeted the company since it announced it plans to start charging customers $5 a month for using their ATM cards to make debit purchases.

Backlash is evident on social media sites like Facebook where pages like "I hate Bank of America" have surfaced. Since the fee announcement, over 25 million people have signed an online petition against it.

"They're tacking on more and more fees," customers Rob Orton said. "I think this one's a little over the top for me."

"I'm a student," Sharon White said. "The $5 they're gonna charge, I need that, that's a meal."

But for a bank as big as B of A, experts point out the $6 billion profit is relatively modest. And with the mega bank based in Charlotte, North Carolina is counting of the bank's success.

"They do need to make a profit for the selfish reason in North Carolina that they're an important company here and the base of employment for a lot of people," NC State economics professor Michael Walden explained.

Last month, 30,000 Bank of America employees were warned of impending layoffs, but the new profit report has bank executives suggesting it may not be as bad.

"It's gonna be a moving situation where if the business outlook brightens for B of A, then perhaps they won't need as many layoffs," Walden added.

Since its layoff announcement, B of A has cut 2,000 positions.

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