“I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders,” Moynihan said in an interview with CNBC’s Larry Kudlow at the Washington Ideas Forum… Customers and shareholders will “understand what we’re doing,”… “Understand we have a right to make a profit.” (Politico)
CHICAGO, October 7, 2011—It’s about time a CEO stood up against the political, so-called “social compact” propaganda. There should be more open and honest business people like Brian Moynihan.
The Bank of America’s public relations people must have had a collective heart attack when they heard his comment to Larry Kudlow. They would have written some sensitive politically palatable pablum for him to say.
Businesses, and banks are businesses, have a right to make a profit. Not just a right — an obligation. Executives have a responsibility to stake-holders to generate a return on their investments. Investors, too, have a right to profit. The whole object of business and investment is profit, as much profit as legally possible. It’s in hope of profit that entrepreneurs and investors build businesses in the first place.
More CEO’s should express their right and responsibility to earn profits. They should start fighting back against the tide of false and irresponsible propaganda being produced by the president, the media, political activists, and the Democratic Party.
Corporate America and business leaders should fight back against charges that they are criminals, thieves and parasites. They create jobs and they create wealth. When does the American public get to hear the cold, hard, unvarnished truth?
Business leaders should instruct their public relations people to stop being so politically correct. Take off the gloves and get on the right side of things. Palatable pablum sounds nice, but it does nothing to counteract lies.
“Well, you can stop [the fee] if you say to the banks, ‘you don’t have some inherent right just to, you know, get a certain amount of profit if your customers are being mistreated.” (President Obama)
Can we stop draconian taxes and regulations if we say to the government, “you don’t have some inherent right to mistreat the citizenry”?
President Obama neither understands nor cares how business works. Charging customers a fee is not mistreatment. They have no right or entitlement to free services. Banks are not charitable institutions.
It is not up to the government or the customer to determine the prices of goods and services. Deciding price is up to the business. Customers then decide whether the price offer is good or bad. If enough of them reject a firm’s price, the price will fall. That is how markets and businesses operate.
Charging a fee for a service is not mistreatment of customers. It is good business, just as offering freebies is sometimes good business. Businesses must make choices that are good for their bottom line, not the pleasure of the president.
“Get The Heck Out of Bank of America.” (Dick Durbin)
Get the heck out of the Senate. Durbin’s reactions to Bank of America are gross in nature. People are tired of this kind of rhetoric. They are also not blind. People know exactly who Durbin was benefitting with his amendment — retailers, not the people.
It was not mistreatment of customers for retailers to pass on the cost of swipe fees through higher prices. One way or another we pay. Either pay the bank fees or pay higher prices for goods and services. We really are not that stupid.
It is time for the president, and his aiding and abetting cohorts, to stop the false allegations and propaganda. It is also time for more CEOs and corporate public relations people to be like Brian Moynihan. Stand up and defend yourselves. But do it with cheerful optimism.
Don’t be like the politicians.
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