With the end of May lackluster job report dominating the news, you may have glossed over BofA’s renegade ex-employee and Mobius’s depressing and gloomy predictions for the economy.
Other stories include First Heritage Bank’s unfortunate closing and, in contrast, Chase planning to open up to 2,000 new branches.
Bank of America to pay millions to cover loss
Giving the ultimate stick to his old boss, a former BofA (NYSE: BAC) employee apparently handed out roughly 300 customer accounts with information including their names, addresses, Social Security numbers, phone numbers, bank account numbers, driver’s license numbers, birth dates, email addresses, mother’s maiden names, PINs, and account balances.
Bank of America has made no official statement on the theft because the case is still under investigation, but those involved estimate a minimum $10 million loss for Bank of America.
Read the whole story here and check in for more updates.
Another financial crisis?
Mark Mobius, the executive chairman of Templeton Asset Management, predicts a dark future for our economy if we cannot get our affairs in order and solve what caused the first financial crisis, what many are calling the Great Recession. A big point of contention in the market’s struggle to recover are the too big to fail banks which have been continuing to grow despite the sour situation. Data from Bloomberg shows that they will increase by 40 percent in the next 15 years.
Banks opening, banks closing
JPMorgan Chase (NYSE: JPM) in going against the grain by announcing plans to open 1,500 to 2,000 more branches, explaining that customer satisfaction is most important. While most banks are closing branches to cut costs, Chase realized that branches are home bases for their customers who enjoy the ability to talk to a person, and as technology advances and becomes more complex, they can go these branches for specialized assistance.
On the other end of the spectrum, First Heritage Bank based in Snohomish, Wash. failed just before the holiday weekend and transferred $173.5 million in assets and $163.3 million in total deposits to Columbia State Bank (NASDAQ: COLB), based in Tacoma, Wash.
See the full report here: First Heritage Bank Closes, Brings 2011 Failure Count to 44