Bank of America sucks
Melissa has had an account at Bank of America since 2002. She deposits a check every month and for every month since she opened the account 8 years ago, she could write checks immediately against the check she deposited and the bank would cash them. For 8 years. Then last month the bank told her they would no longer do that. They were going to hold the check for about a week until it ‘cleared’.
What happened? Bank of America has ordered its branch managers to gather in the ‘float’ at the cost of losing some accounts to more customer friendly banks. (‘Float’ is cash the bank has in its accounts that it doesn’t own. Melissa’s money belongs to her, Bank of America cashes the check immediately and then sits on that money for several days during which time it can lend it out short term. Any money, even a very small amount which makes them interest with no cost is pure profit.)
So do Rule #1 investors want to own this business?
No. Hell, no. I don’t want to own businesses that screw the little guy, I don’t care how much money they make. Screw them. We're moving all our accounts to BB&T. I love their attitude. They walk their talk. And they like Ayn Rand.
Now go play.