Dave Ramsey Calls for Boycott of Citi and Bank of America
March 1, 2009 by Miranda Marquit
Filed under Finance
Dave Ramsey, the famous personal finance guru, is on FIRE about Citi and Bank of America. He’s so upset about a deal for the government to buy a stake in Citi – and the possibility that Bank of America could be up next — that he’s called for a boycott of both institutions. (Hat tip for this news: Financial Methods.)
But while Ramsey is upset about the quasi-nationalization of some banks that need some help, my beef with Citi is completely different. I’m less upset about the government’s new play — which doesn’t include just throwing taxpayer money at a bank and hoping executive bonuses save the financial system — than I am about Citi’s own decisions lately.
I’ve all but decided to pull my money out of Citi, but not because Dave Ramsey tells me to, or because I’m upset about the government owning a little more than 1/3 of the bank. I’m upset because, after taking taxpayer bailout money over the course of the last few months, Citi is sticking it back to the taxpayers with higher interest rates and massive lay-offs.
As for Bank of America, I tend to agree with the assessment Financial Methods made of the situation: Why create a run on BofA that could further destabilize the financial system and the economy?
What do you think about government stakes in banks? Would it be enough for you to boycott a financial institution?
image source: daveramsey.com
I agree, don’t get me started with the banking industry. It makes me want to take my money and bury it in the back yard somewhere. I know greed has been around for a long time. When did it become okay for our financial institutions to get away with a plethora of greed. It would be nice to see a new law in this respect. We have to play by the rules so should they. I would boycott in a minute. I am holding out for now to see if our new government will be strong enough to snap the whip and make our so call banks “the money grubbers” pay for their bad behavior. Unless, of course they increase my rate another 10%!!!
I understand the boycott suggestion but what bank(s) would Mr. Ramsey have people move their money to? It is easy to attack Citi & BofA because their deeds are dominating the news but that doesn’t mean the other banks aren’t guilty of the same deeds.
I think both Pamela and T Silver make good points. I think the general rule is that if you’re not happy about a bank, make the switch. There are local banks and credit unions that you can join, rather than these behemoths. Indeed, in our town, there are regional and local banks that aren’t in near the trouble the big guys are. Just make sure wherever you go is FDIC insured.
Interesting point of view.
While the job losses are unfortunate, a late correction in business practices is better than no correction.
Still, I will be moving my interests to a local credit union. The government should not have any stake in the market place.
I like the idea of local credit unions. We love ours.
Ive banked at citi and bofa and capital one and chase and wamu…pretty much all of them at one point or another and I’ve always said that Bofa and Citi are the only two banks high on my shitlist that I will never ever do business with again, so it is quite amusing that I am now reading this, and even cooler because I am a fan a Dave Ramsey. I guess great minds think alike. I now bank @ a local credit union as well and I love it. But he’s right, Citi and Bofa are both shady companies, I knew this long before the recession.