JPMorgan Chase, Bank Of America Expanding Into 401(k) Retirement Business

Bloomberg Businessweek:

Bank of America (BAC), JPMorgan Chase (JPM), and Wells Fargo (WFC) are adding staff, creating easier-to-use technology, and competing on fees in an effort to win a bigger share of the trillions of dollars in 401(k) savings plans. JPMorgan almost doubled its sales force dedicated to selling retirement plan services to employers in 2010, according to Michael Falcon, whose job as head of retirement in the U.S. and Canada for the bank's asset management unit was created in January. "It's one of the top priorities" at JPMorgan, he says.

Read the whole story: Bloomberg Businessweek

Comments

[ValeryD22]

02:42 AM on 05/05/2011

Several considerations. Retirement funds are one of the last asset pools not controlled by the banks which ensures they are TBTF. Expect proprietary fund of fund of fund choices with opaque contents (insurance like products). Cross selling is a new strategy to increase profitability. Most likely there will be several layers of companies involved, each expecting hedge fund-like profits while you are shouldering all the risk, returns will be mediocre by design. Leopards don't change their spots. Some funds will be designed to fail under special market conditions, funds packed with AAA CDOs and other rubbish. The banks really, really need a place to stash crappy securities in times of contraction. http://cashadvancesus.com/chase-cancelling-atm-fees/

[LeeVing]

10:38 AM on 04/05/2011

Don't believe the hype, the banks are not going to steal your money. Don't rely upon a 401k for a real retirement, but don't ignore it either. If you can get into a safe harbor plan, by all means do it.

[drkazmd65]

11:32 PM on 04/04/2011

Of course the Big Banks want a bigger share in handling 401k programs. Anywhere there is money, they find a opportunity to skim, fleece, and flim-flam the individuals or groups who are depositing that money.

They see 'our' money - they see it as their money, if only they can figure out a way to game the legal system and trick us out of it.

Same reason these rat-b@st@rds wanted the Government to privatize Social Security under President Bush a few years back.

[Dana1982]

10:10 AM on 04/05/2011

Exactly - This is the reason why everyone should just get out of these 401k scams. It's better to spend your money today because if you try to save it, you'll just get ripped off.

[LeeVing]

10:40 AM on 04/05/2011

Baloney. Don't rely entirely on a 401(k) for your retirement, but don't ignore it either. If your company offers a 401k and you luck out and it's a safe harbor, your foolish not to invest at least 5% to get a 4% match. Why would you not get into that?

[LightShadow62]

07:28 PM on 04/04/2011

The banks wanting more of the 401k market just means they have figured out a way to steal money from the 401k funds.

[Dana1982]

10:11 AM on 04/05/2011

We should show them who's in control by keeping all our money in mayonnaise jars. That way banks can't steal from us anymore.

[LeeVing]

10:41 AM on 04/05/2011

Do you wear a tin-foil hat and live with like 200 cats?

[Arts4u]

06:08 PM on 04/04/2011

Of course they want to sell retirement plans.

They already take out dead peasant insurance policies on their employees - they might as well take one out on you as well....

http://deadpeasantinsurance.com/which-employers-bought-policies-on-the-lives-of-employees/

[Dana1982]

11:58 AM on 04/04/2011

We work hard to try to save a buck only to get ripped off by some bank trying to cash in on our hard work.

These banks greed is a good reason never to get involved in the 401k in the first place.

Only fools get sucked into the greed of these scams.

[MrStat1]

05:55 PM on 04/04/2011

Then don't take advantage of the 401k tax benefit and don't save money.

[tck29]

10:18 AM on 04/05/2011

What kind of returns do you get from your mayonnaise jar?

I'll bet my 401k outperforms it.

[nanimal]

11:30 AM on 04/04/2011

Great.....so they can gamble our money away while they reep huge bonuses. Wonderful! I am going to pray tonight that my company is a new client of any of these banks.

[Dana1982]

12:00 PM on 04/04/2011

Your money is safer in a mayonnaise jar hidden in your back yard. Never get involved in a 401k, and if you already have, take the hit and just get out.

[LeeVing]

03:53 PM on 04/04/2011

"...take the hit and get out." It's not nearly that easy. You can't take money out of a 401(k) if you still work for the company sponsoring the plan. If your company offers a match or profit sharing, you're foolish not to participate. If your company has what's called a "Safe Harbor" plan, you're doubly foolish to not participate.

[2intrepid]

10:57 AM on 04/04/2011

Ahhso now they are going after this business in a big way; Ms. Warren should step in and say NO, not until the big banks accept much stiffer regulations and increase substantially the level of cash to cover any losses they experience these crap shooters should not be allowed to play with anyone’s 401k

[MrStat1]

05:55 PM on 04/04/2011

She may not have the legal authority to do so.

[ADVice]

10:01 AM on 04/04/2011

Here we still are, and the Hale-Bopp comet people who escaped their corporeal bodies to go to the mother ship are laughing at us now.

[blackranger]

09:51 AM on 04/04/2011

What a convenient way to get all those bad mortgages off their books, they can just sell em to the 401Ks that they manage and never have to reveal the real losses they took. Take your 401K and put it in your local bank in a plain old savings account, at least it will be safe and the benefits of having the money in your local community are far reaching

[blackranger]

09:38 AM on 04/04/2011

They will never be satisfied until they have every last dime. 401Ks cost a lot more than mutual funds expenses (some funds) and for the most part you have a choice with 401Ks that are very limited. the 401K laws benefited workers a little and the wall street boys a lot. Watch for a concentrated effort for them to grab the Social Security funds next.

[tck29]

10:35 AM on 04/04/2011

A well-run 401k with diversified investment options and low fees is a great deal!

But be forewarned: the big banks CANNOT provide a well-run plan with low fees.

[LeeVing]

03:55 PM on 04/04/2011

So true. Most folks I know of who have to deal with Fidelity over these plans absolutely hate dealing with Fidelity. The tax return is basically do-it-yourself and as far as service goes, forget it.

[Dana1982]

12:02 PM on 04/04/2011

Only fools get sucked into this 401 scam. Save what you can in a mayonnaise jar, it's safer this way.

[ADVice]

09:03 AM on 04/04/2011

Come one, come all. Youse paid yer money now takes yer chance! Maybe they should just set up a ferris wheel and hire a few clowns to walk around outside their buildings. They won't be happy till they have it all.

[GlobalCtzn]

08:44 AM on 04/04/2011

I am sure glad that those 401k and IRA plans always looked like crap to me and I have been saving the 'stupid way' all these years..........

[ADVice]

09:04 AM on 04/04/2011

And we were told it was the stupid ones who kept their money under the mattress. Guess who looks stupid now.

[tck29]

10:36 AM on 04/04/2011

What kind of returns are you getting?

I'll bet my 401k has done better.

[blackranger]

09:39 AM on 04/04/2011

At least with IRA plans you can chose for yourself where to keep that money. You can start an IRA fund with your local bank and that would benefit your comunity.

[democles]

08:37 AM on 04/04/2011

Big banks want to drive every other bank out of business so they can continue their full on pillage of the wealth and health of the this country. And Washington will give it to them.

[schrodster]

08:28 AM on 04/04/2011

Withdraw all your money from the TBTF Banks and invest in any company that makes tents.