Wells Fargo & Co (WFC), Bank of America Corp (BAC): Banks Are “Effectively Blacklisting” Millions of Poor Americans

From an investor’s perspective, it’s tempting to conclude that this is a good thing, as it’s likely to reduce the number of unprofitable accounts banks take on. But from a societal standpoint, one can’t help but feel sympathy for the people getting blacklisted by the emerging practice.

As the Times points out (emphasis added), “The problem is contributing to the growth of the roughly 10 million households in the United States that lack a banking account, a basic requirement of modern economic life.”

What’s the proper solution? How should banks weigh these conflicting perspectives? The answers to these questions remain to be seen, but one thing is for certain: The last thing banks need right now is more bad press.

The article Banks Are “Effectively Blacklisting” Millions of Poor Americans originally appeared on Fool.com is written by John Maxfield.

John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

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