In the consumer experience of the banking world, the loan application process requires proof of income of tax returns or W-2’s for two calendar years, and this requirement is dependent on a consumer’s occupation. Non-recurring income is a banking term for income received on a one-time basis with no possibility of receiving the income again on a consistent basis. This income does include selling of property, winning the lottery, accounting gains, and retirement account liquidation. The banks do not consider this income as pertinent to consider non-recurring income source as a compensating factor in the loan approval process, and the applicant can be declined for a loan request, as this income is not relevant in the consumer’s ability to payback a loan. The banking industry has a different rationale on nonrecurring income when it comes to reporting earnings. As bank earnings are being reported this week, Bank of America went from a $7.3 billion loss in the second quarter … [Read more...]
The debit card $5 fee debacle is a future insight on effectiveness of financial reform as consumer burdens cost of bad policy and bad bankers.
As a former executive in banking, a $5 fee increase was a frequent and minus any potential threat of consumer backlash, but times are different for the consumers and the country. The consumers did not riot, protest, or actively pursue mass reallocations of business to smaller banks or credit union when bankers and Wall Street did take the country to the edge of the economic abyss, became recipients of bailout funds for behaving badly, or foreclosure procedures that were unethical to witness people losing their homes even innocent consumers along with the delinquent homeowners. However, the $5 debit card fee debacle has broke loose a storm of consumer discontent with with the business(Wall Street and banks) and political leadership of our country. The LA Times reports group that reported consumers of young and old are protesting the banking industry the focal point of this process is Bank of America Bank of America(B of A). As the bank was following the lead of the Wells Fargo and JP … [Read more...]
The American debt clock does not stop even when the maximum debt ceiling is reached in early August. The tick tock of interest, obligations, and promises does continue in lieu of no agreement in the raising of the debt ceiling. The prolonged negotiations by Congress or any short term default does pose a potential disaster for the American economy as the inability of the political leadership to proactively manage the fiscal house of the United States is a domino if it falls would trigger a series of events to amputate the entire economic, financial, and dominance of America overnight. Why would any leadership take action to risk perception of possible default with the potential costs of default being so high? The political leadership had 18 months to avoid this crisis and chose ideology over reality to handle crisis until now, the precedent, disconnect, and current behavior are indicators that default is easier than walking the walk of change, and last minute resolution of debt ceiling … [Read more...]