My Banker>>>>>>>>>>>>>


A recent article in the New York Times states, "Most of the banking industry couldn’t be happier with the current system", and it is easy to understand why. They have the regulators, the politicians and the public hoodwinked into thinking that the current 'emergency' should give them a license to do what ever is necessary to preserve the system. This existing system of rules and reg's somehow allows them to enjoy a heads-I-win-tails-you-lose environment and they are loving it... Let me give a personal experience as proof.

Friday I received a letter from the administrator of my IRA who informed me that the bank that issued one of the CDs that I have in my retirement portfolio (As an ex-hippie I hate that I have a portfolio but what else to call it???) has been taken over by another bank. I didn't know if the original issuer failed or sold out or what but "Curly bank and trust"is now known as "Moe savings and loan". One wouldn't think that such a change in ownership would affect my CD, which is, essentially, a loan I made to Curly. Curly promised to pay me back my money in a couple of years along with 4.5% interest. I agreed not to touch the money I gave Curly for a couple of years or I would have to pay a penalty and would lose my interest. But now that Moe has taken over Curly's bank he tells me he will only be giving me 0.25% instead of 4.5% and if I don't like it I can have my money back (no penalty or loss of interest to date) and bite his ass. WOW! What a great deal. I was pissed off!

On Monday morning I called the administrator of the IRA account and talked to one of the post-graduate business school whizzes and asked him how this could happen? Didn't Moe have an obligation to honor the business contracts of Curly? This CD was "call protected". Where was my protection now??? He condescendingly opined that this was a merger promulgated BY the FDIC!! and in order to get Moe to take over Curly's bank and not let poor Curly's bank fail (thus necessitating a take-over by the FDIC)they were letting Moe do-what-he-had-to-do. That is to say, that they sweetened the deal to Moe and let Curly off the hook on my dime! Needless to say the concept outraged me.

I informed the Boston-based business school post graduate (who has a job while I do not!) that I would opt out of this 'deal' and find someplace else to put my funds. He then informed me that the administrator would handle all the details for me and for that I was initially pleased. Until he informed me that there would be a 39 dollar charge to broker the complex deal of getting me back my money. "Oh B&*l S*#t", I told him and he put me on hold. When he came back he apologized and told me that since I was a preferred client (A Client! with a Portfolio!)they would waive the fee and then I was not altogether unhappy with him and told him "thanks".

WHAT THE HELL IS GOING ON????
Sorry for yelling there...

Is there no constancy? Are there no rules anymore?
Why can't I be too big to fail?