Bank of America shut down his branch just hours after he made a huge deposit. A California man deposits $33K check in BofA account, never sees it again as branch closes. His money disappeared.
The trend of banks closing branches due to increased online banking has left many customers in disbelief when major banks fail to deliver on their services. Brian Leonard of Oakland, California experienced this firsthand when he deposited $33,000 through a teller at Bank of America, only for the branch to shut down hours later without his deposit posting. Despite expressing his concerns to bank representatives, they told him there was nothing they could do.
Leonard’s situation felt like a bad dream, but unfortunately, it was all too real. He expressed doubts about ever seeing his money again, feeling frustrated and helpless as the bank did not offer any solutions. Leonard’s experience highlights the risks that come with relying solely on online banking, and the need for banks to provide reliable and accessible services for their customers.
In related news, Bank of America Global Research is maintaining its prediction of a recession in 2023, despite the Federal Reserve’s recent actions. In an interview with “Mornings with Maria,” Bank of America Vice Chairman Keith Banks said that the measures announced by the Federal Reserve are not going to be enough to prevent the recession, and additional labor weakness is expected to occur throughout the year.
Banks’ comments come as markets await earnings data and commentary from Federal Reserve Chair Jerome Powell, with a number of Wall Street banks forecasting a downturn this year. However, Banks remains concerned about multiple macroeconomic predictions, “none of which is good for the bottom line.”
Banks suggested that as the economy slows, revenue will also slow, causing margin pressure and negative operating leverage, which will ultimately impact earnings. Banks also noted that there is a lot of liquidity in the market, but it needs to be reduced further.
In terms of investing, Banks emphasized the importance of owning neutral weight in equities and fixed income, adding that over the intermediate to long-term, both asset classes will perform. However, he suggested waiting for a more favorable level before adding money to investors’ accounts. When that happens, Banks plans to look at small cap, developed international, emerging market, and value over growth investments.
Overall, Bank of America remains pessimistic about the future and expects a recession in 2023, with additional labor weakness throughout the year. While the Federal Reserve has taken action, Banks believes it will not be enough to prevent the recession, and investors should remain cautious.