Don't Quit Your Day Job…

Well, probably not the death of free checking accounts, but a little hyperbole never killed anyone, right?

DQYDJ already gave you a “view from 35,000 feet” analysis of new debit card transaction caps in our last article, but we wanted to follow it up with something deeper, for those interested in how the sausage is made. We’ve dug into two of the more recent Bank of America investor releases and are ready to share our thoughts on why Bank of America’s move is rational – and you can expect other banks to follow. Yes, likely even online banks and credit unions. However, first up is Citibank, who is eliminating free checking… unless your account is over $6,000.

Even though I lifted the moniker from this article on CNN Money, the scare quotes are appropriate. I’ve written about the Credit Card Act of 2009 and its unintended consequences. Lucky for you, the law is starting to bear fruit. We’ve seen issuers who offer cards with 79.9% interest rates, at least this article features a few cards with redeeming qualities. Anyway, you can tell the title is a bit tongue in cheek, but let’s tackle the features in the three cards shown.

A few years back my cousin visited me while I was still in school. Since he had never been to Vegas, my roommate and I decided to take him there… as soon as he landed in Los Angeles. Hilarity ensued… and nothing was learned at all about retirement saving except how not to approach it.

Let the good times roll! As I write this article, the S&P 500 is at 1068.22, up 55.91% in absolute terms since the trough on March 9, 2009. Investor and consumer sentiment seems to be climbing according to polls and news headlines. In fact, if you somehow avoided the news since last October 7th, your S&P 500 investments would be even. However, signs abound that we could be in the midst of a “sucker’s” rally- universally defined as unsustainable…

One of the provisions for receiving government funds through TARP caps executive salaries at $500,000. Companies argue that setting caps in that way leads to a talent drain – top employees who can receive a greater salary elsewhere will go do that. These predictions are coming true; TARP companies are losing talent to boutique firms that don’t have compensation limits. Is this the best effect on companies trying to pay back public money?