Bank merger benefits shareholders, not account holders

Viewpoints

March 12, 2010

By Wes Browne Register Columnist The Richmond Register Fri Mar 12, 2010, 11:43 AM EST

RICHMOND — I have had my personal checking account at the same bank since I was in school. How I chose my bank was simple. My brother-in-law at the time was a branch manager and I opened an account with him. He left my bank and my family years ago, but I have stayed with my bank all these years for a simple reason: It was easy. Now my bank isn’t my bank anymore and it’s time for me to go, too.

Last year, my bank was purchased by a larger bank and shortly thereafter, I started receiving literature from the larger bank explaining that my bank was now part of their “family” and that things would be great. I knew better.

Bank mergers are not intended to benefit bank customers; they are intended to benefit shareholders. I understand that, but frankly the larger bank’s continued insistence that this change was somehow good for me and other customers is rather irritating. The cover of each piece of glossy literature the larger bank has sent me touts this change as exciting and beneficial, but the contents within detail only drawbacks.

Before the bank even changed its name, I heard from friends who suddenly had their credit limits lowered. Eventually, the same thing happened to me. What good news!

Guess what other good news I received? The larger bank is changing the routing number on my checking account. How exciting! Now I get to contact my water company, electric company, waste collection company, credit card company and on and on to change my billing information so my automatic withdrawals all can continue. How I’ve missed dealing with those companies — this will give us a chance to catch up.

It gets better. My debit card account number (that I not only had committed to memory but also had associated with numerous accounts) is changing, too. I was bored with that old card number anyway. Now, I get a fresh new number to learn and replace with the online merchants I frequent. You are probably beginning to understand just how good this is for customers … but that’s not all.

Today, I logged in to online banking and my bank account isn’t there. But that’s okay, I get to go on a new Web site with the larger bank and start from scratch. I am especially looking forward to re-entering the names and addresses of everyone I like to send electronic bank drafts (of course I can only do this after I go to their Web site and enter the not one, but two codes the larger bank sent me to set up online banking with them).

The good news doesn’t end there. I get to pay new fees! My checking account now includes a monthly fee as well as many other fees detailed in an exciting correspondence sent to me by the larger bank. The fun never stops.

I understand these things happen. Most corporations seek to maximize profits and they don’t really care about people (although according to five members of the United States Supreme Court they are people). But you know what? If you tell me you’re going to serve me lima beans and then serve me lima beans, you sold me straight. If you tell me I’m getting ice cream and you serve me lima beans, you’re just being dishonest. I don’t have to like it and I don’t have to stay. Of course, switching banks is also a hassle and will entail many of the same issues. So, I get to choose between lima beans and lima beans. I just want some ice cream.

Wes Browne is a Richmond attorney. He can be reached at http://www.brownelawoffice.com

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