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The Most Despicable Thing Bank of America Has Ever Done

By John Maxfield – Mar 1, 2014 at 9:00AM

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Bank of America has employed a number of questionable business practices over the last few years, but one policy towers over the rest in terms of its moral and ethical offensiveness.

There's a long and growing list of Bank of America's (BAC -2.42%) misdeeds one must wade through in order to determine which is the worst. But if anyone is qualified to do so, it would be Motley Fool contributor John Maxfield, author of the most comprehensive list of the bank's recent indiscretions that's widely available.

Since the financial crisis, the nation's second largest bank by assets has been accused of discriminating against women and minorities, rigging the municipal bond market, tipping the scales in ostensibly neutral arbitration forums, misleading investors about the financial health of Countrywide Financial and Merrill Lynch prior to their acquisitions, submitting fraudulent documents to courts in judicial foreclosure proceedings, misrepresenting the safety and liquidity of purportedly cash-like investment products, and underpaying employees in its Merrill Lynch division, among other things.

In the video below, however, John gives his rationale for why Bank of America's former policy of reordering debit-card transactions for the purpose of maximizing overdraft fees is far and away the most egregious moral and ethical infraction committed by the bank to date.

John Maxfield owns shares of Bank of America. The Motley Fool recommends and owns shares of Bank of America. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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