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FBN's Charlie Gasparino on Bank of America lobbying the new consumer protection agency on debit-card fees.
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It's from Bank of America -- a war with the new consumer protection agency over any charges to consumers through that five dollar debit card fee hike -- has the latest exclusive -- -- -- the president spoke about -- America vice president said it was a dumb move sure tone -- I mean Durbin of Durbin.
Well you know I think to leave the -- I don't I don't give some of the -- pretty much which could but I will tell you this.
At Bank of America and sources tell the (%expletive) does that work they are freaking out over this latest.
Sort of controversy there and you know they're -- -- every day persons over raising capital they need to raise a lot of capital.
Now it's on a public relations front as they raised those.
Debit card -- They're not alone but let me tell you something they are in -- they are they they have -- the bullseye right on -- -- from all these politicians and this is what.
Bank of America is doing according to sources.
At the bank that they're launching what it what's been described to us that the (%expletive) does that work as a massive lobbying effort.
There are particularly lobbying this new consumer protection agency this is key.
To basically get them to back off the rhetoric and convince them that their fees were warned these fees and these debit card Visa -- -- -- five dollar much charged on some debit card fees.
BankAmerica is explaining how they're charging at how not -- the all the consumers again hit with this and why they had to do they're blaming it on Dodd-Frank itself the big financial reform legislation which is increasing.
Other fees.
This is a way to defray those costs so that's what they're doing now now this is really interesting and it's a Dicey situation for Bank of America.
People inside the bank Teleflex does that work because primarily.
They're worried that this new consumer protection agency.
Which has -- flexed its muscle yet.
Might -- -- on this issue.
And force them to reverse this thing.
They're counting on this money to the free cause the regulatory -- so inside Bank of America that they are launching a lobbying effort they're going to congressional legion leaders.
Sources tell the Fox Business Network and they are going.
They set up meetings in the past with the consumer protection -- -- This setting up in the future I hear they haven't approached the White House directly yet but -- doing it through this consumer protection age range as you know created out at a Dodd F the Dodd-Frank.
I believe it's a unit of the Treasury Department so it does have some congressional controlled -- Obama appoints.
The -- the executive director which I think his name is Roger.
That you that the used to be Lisbon warn you -- get -- -- where we are right now it's -- -- just because as their lobbying here.
They're also getting some pressure resources -- tell the Fox Business Network.
From regulators about expect explaining the progress of their capital raising -- remember you've raised five billion from Warren Buffett.
They sold a bunch of assets.
Brian morning and the CEO is saying He needs to -- you want to sell more and they are getting a little pressure from regulators wanting.
-- apparently Bank of America can't have to acquire countrywide.
Boy gonna set at half to acquire -- that -- -- music hurtful.
Quiet.
Talk about consumer protection and and and appeal because that's a to liability for them with that -- a problem this is like elephant let's let's let's think back up a little bit the Bank of America needs to raise capital because of future.
Potential liability from countries like but you what is the big mortgage lender which issue mortgages a lot of those mortgages of -- if there were a liar loans for people lied on their mortgage applications those mortgages are in bonds right mortgage backed securities those bonds.
Are owned by investors.
Investors will want up with them back forced Bank of America to buy back as they were issued fraudulently.
That's why they faced a liability how did they -- countrywide.
It was a back in early 2008.
Prior to -- the the financial crisis -- some people believe the financial crisis that which was to credit crunch before that was over that things were getting better.
And Ken Lewis to former CEO BankAmerica me to bed and said you know what.
This market may come back the credit crunch is over that -- housing will come back.
I can buy this thing which made a lot of money that has come to I was a high flight company especially its stock on the others to on the New York Stock Exchange -- and it all of that but but idling are never if you believe them the housing market is coming back and then you buy that that's what He did in.
Obviously the housing market.
Hasn't come back and the financial crisis.
To basically destroyed.
Bank of America it not only were they stuck with this thing.
It what Merrill Lynch Merrill Lynch is and where lynch gave them a fifteen billion dollar loss superconducting off well that's that's that's nice that the -- me about the -- -- of that curve ball out really well countrywide wanna talk about consumer protection.
