Letter to the Editor-"Big banks, big money, unanswered questions"
The Federal Reserve has designated Bank of America as “too big to fail”. I hope that Bank of America is not “too big to admit to and correct a failure”.
Letter to the Editor-"Big banks, big money, unanswered questions"
The Federal Reserve has designated Bank of America as “too big to fail”. I hope that Bank of America is not “too big to admit to and correct a failure”.
Nearly 20 years ago B of A mistakenly transferred over $3.3 million of funds out of two accounts belonging to the Kennen Foundation, a local non-profit. For lo these many years, and despite concurrence as to the Bank’s misfeasance by the government agencies cited in your article, the Bank has stonewalled all attempts to recover these funds.
In all of this time, the Bank has never responded to Congressional inquiries or offered a single substantive explanation or any documentation as to why these funds were withdrawn from the charity’s account without any notice. The Bank’s callous behavior has consigned untold numbers of women to abusive home situations.
I have over 30 years of finance, investment banking and senior management experience. I founded and successfully operated my own FINRA registered Broker Dealer providing advisory services and access to the capital markets and previously served as COO and CFO for 12 years for a $150mm provider of M&A services to privately owned businesses. In my four years of advising the Kennen Foundation, I have observed institutional intransigence by the Bank which is unmatched by any I have experienced in my career.
The Bank must make restitution comprised of principal plus compensatory interest in recognition of the hardship imposed on the Foundation, its beneficiaries, and its leadership. The Foundation is a nonprofit organization whose return on use of dollars is measured in terms of helping people and saving lives. This is an intangible rate of return. You cannot place a return on investment of a lost opportunity cost associated with a battered woman with no safe shelter. The 13% compounded rate requested by the Foundation seems very modest under the circumstances.
Rhetorical comment to Bank of America. You have the choice of doing the right thing or continuing to act in an unethical and possibly illegal fashion. Choose one – let your conscience be your guide.
Elliot B. Reiff
Newtown, PA
