Sorry!! The article you are trying to read is not available now.

Did Bank Transfer Day Make a Dent?

Print comment Post Comments
Whether it was called National Bank Transfer Day, International Bank Transfer Day, Move Your Money Day or the Make Wall Street Pay day of action, November 5 saw thousands take to their local streets with one singular message: Take your business out of big banks and give it to community banks and credit unions. In lieu of Congressional action, the citizenry has taken it upon itself to enact its own version of Wall Street reform.

Leading up to the movement -- part protest over income inequality, the taxpayer-funded bailouts, the idea of ‘too big to fail’ and aggressive fees, and part push to reinvest in local communities -- an organization called Rebuild the Dream saw pledges in the tens of thousands to divest funds from corporate banks.

Last Tuesday, Minyanville reported 25,575 Bank of America clients, 13,233 from Chase, 3,509 from Citigroup, and 18,539 other big bank customers had committed to the cause.

As of today, the first business day after the protests, those numbers have seen a modest increase with the following accounts pledged to close:
  • Bank of America: 33,095
  • Citigroup: 4,540
  • Chase: 17,828
  • Other big banks combined: 25,342

But far more impressive numbers have come from the Credit Union National Association, which is reporting that 650,000 accounts have been opened at credit unions since September 29, versus just 600,000 new accounts opened in all of 2010. The September 29 starting point reflects the date Bank of America announced the $5 monthly debit fee, only to nix it a month later.

As Minyanville noted last month, it’s unclear whether these credit union gains are necessarily big banks’ losses. We’ll have to wait for the bank industry’s fourth-quarter results early next year to really determine if this movement made Wall Street shake in its billion-dollar boots.

(See also: Bank of America Nixes Debit Fee, but Tens of Thousands To Leave Anyway and Credit Unions See New Business in Anti-Wall Street Angst)
POSITION:  No positions in stocks mentioned.