The Bank Note

Have you ever really looked at your bank statement?  Charges for service, convenience, withdrawals, writing cheques, paying bills, etc.  This is our money, and we’re being charged to get it, use it, or move it around.  Great gig if you can get it!

I was looking mine over a while back, and found a bunch of vague fees and charges for various things that I didn’t understand.  So, I called up my bank with a few questions.

Thank you for calling ‘Monolith Bank’. This is Patty.  How can I help you?”

Hi, Patty.  I was just looking at my latest bank statement, and saw that there are were bunch of miscellaneous charges on it, adding up to over $25.”

“…Yes..?

Well, since I don’t write more than one cheque per month, don’t use my overdraft protection, or really do anything other than have money come in and go out, I don’t know what these charges are for.”

What is it you’re not sure about with these charges?”  Patty asked, showing early signs of frustration.

Since you feel that you need to take this money from my account without my approval, I should at least know why, right?  I want you to explain each one of these charges to me”.

We can’t do that”, she explained.

Well, if you can’t tell me what these are, I’m not paying them”, I tried to say as evenly tempered as I could.

We can’t explain them all.  It would take too long.  I’ll go ahead and reverse the charges on your latest statement”.

Really? Thanks! I’ll call you again next month.  Thanks, Patty.” Then I hung up quickly.

Maybe I won that little battle, but I know I’m losing the war.  You can’t beat the banks.

During a radio segment on business earlier this week, the announcer noted that a major Canadian bank posted it’s quarterly earnings (profit).  This bank made over $1 billion dollars in a 3 month period.  Wow!  Many countries don’t have this kind of GDP.  That’s an astounding number, and makes you wonder just how fat the bank is.

In the same sentence, the radio expert noted that since the earnings were slightly less than they expected, the bank announced that they would immediately lay off over 1,000 employees.

Huh?  Did I miss something?  A bank makes over a billion dollars in 3 months, but because they didn’t make as much as they thought, they’d send 1,000 families into financial crisis.

Here’s another thing that doesn’t seem to make sense either; loans.  If you need money, you probably don’t have it, or you wouldn’t need it in the first place, but to get a loan, you need to show that you don’t need it, or they won’t give it to you.

Then, if the bank gods look favourably on you and decide to allow you to borrow, the poorest will pay the most for that loan.  Again, if you’re better off, the loan costs less, but if you’re on hard times, they’ll charge you more.

Now, I’m no fan of the ‘occupy movement’, and I certainly don’t subscribe to a socialist view on the world, mostly because it’s not realistic or attainable.  As long as there are people, some will always rise to greatness and some will always fall to destitution.  It’s as sure to happen as the sun coming up tomorrow.

But at some point, you have to wonder what it would take for these financial giants to stop the ludicrous blood-letting that it puts its customers through.

Over the next few months, a bunch of my former coworkers will discover their employment fate as my old company winds down operations in Canada.

This has become a common tale lately, as other companies announce downsizing and layoffs just ahead of the Christmas Holiday season.  We’ll likely see more announcements in the new year after the holiday seasons’ tallies are completed.

When a company loses money consistently for a period of time and there’s no immediate rebound on the horizon, you end up in this predicament.  It’s just economics.  And it sucks!

I hope that business leaders faced with these decisions, really dive into the real cost of downsizing, and it’s impact not only on the emotions and finances of its employees, but also the larger effect of what happens as a cascade effect on the economy as a whole.

In 1914, Henry Ford announced that he would start paying his employees a princely sum of $5 per day, pretty much doubling the average wage of the day.  This accomplished 2 things for Mr. Ford:

  1. It reduced attrition.  Losing skilled workers was very expensive from a retraining standpoint, and it slowed production
  2. It meant that once the other manufacturing sectors caught on, people could afford to buy his cars

This thinking revolutionized the manufacturing sector, and gave birth to the American middle class.

I’m not suggesting that companies like Sears suddenly decide that if they double the wages of their workers, things will get better for them.  The concept of maintaining a working class, however, becomes a fundamental necessity in order to provide a source of income for itself.  It’s a bit selfish, I guess, but if people are out of work, they’ll stop buying from you.

It’s not all doom and gloom.  There are other jobs out there, and when you get thrown into the ocean from a burning ship, you might be surprised at how good it feels.  Most will get picked up by a passing boat.  With any luck, it’ll be a luxury liner, and not a garbage scow.

As I said earlier, I’m no economist, and I’m certainly not a captain of industry – minds greater than mine are in control.  That doesn’t mean though, that I don’t have a voice or options.

Patty can expect a call again soon, I can move my money to a fee-free financial institution, and when I’m out shopping later today, I might even check my lottery ticket.

Fingers crossed!

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