Karma is a bitch. BAC moved their 401k assets from Fidelity to Merrill so I am sure Fidelity's decision was related. What BAC didn't realize is that it is highly likely that the people they're laying off (those who are often the higher paid and have been with the bank a long time) have high balances and will quickly move their money away from Merrill via rollover IRAs as soon as it is feasible.
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@qgr - it means that we lost a customer. Fidelity is a huge customer, folks who have accounts there (tens of millions of them) get a card, we manage the card and we profit from that business. It's huge for BAC and they decided to switch from BAC AMEX to US BANK VISA - so, we and American Express got screwed, Visa and US Bank came on top. So, what the poster is saying, since this will lower profits, we will have to turn around and cut employees and have another round of layoffs to pay for mistakes that executives made. They will keep their bonuses nonetheless.
Fidelity OKs Visa Card Alliance, Ditches BofA-AmEx
BY CIARAN MCEVOY, INVESTOR'S BUSINESS DAILY
Nothing. This is part of a strategy to decrease private label credit cards.
What does this mean?