As many of our readers are aware, after discovering that Fidelity charged $420 million in management fees on $430 million in income in his money market account, SD contributor AGXIIK recently removed his entire IRA from Fidelity, set up an LLC to legally oversee his own IRA, and converted his paper IRA to physical metal in his own possession with the assistance of SD Bullion.
Fidelity made the mistake of contacting AGXIIK Thursday to inquire about his account and whether Fidelity was meeting his needs.
Needless to say, hilarity ensued.
I just had an opportunity to give Fidelity a huge middle digit. One of their smarmy reps called to asked me about my account and if Fidelity was meeting my needs. After giving him the complete overview of how Fidelity tried to hose me on a wire transfer from Canada by telling me how their extraordinarily experienced back shop of experts made this service so valuable, I told him a crew of spider monkeys could have accomplish the same thing, I ended up saving about $7000 using my local bank.
I then told him how I ended up getting a grand total of 1 BPS on my account while Fidelity helped themselves to the other 99 BPS on income derived from managing a short term Money market account. That income was $430,000,000 Hmmm? Fidelity takes $420,000,000 out of a total income of $430,000,000 to service a money market account with an asset base of $120,000,000,000. We long suffering account holders split up the $10,000,000.
This MM consists mostly of short term banking and commercial paper, including several banks that are under severe Euro or Federal scrutiny. I felt so warm and fuzzy with my money invested in those types of securities. I guess $420,000,000 is a fair income for managing a portfolio of junk paper and failed banks. The little people will need to be happy with the scraps. The captain of the Titanic was probably well paid to manage his ship too but that one ended badly too.
The rep’s response was pretty canned as he apologized to me for the issues I related. I told him that his apologies were not warranted and since I am a former banker I suggested that when you screw someone, don’t think that an apology will make a difference. All it does is piss off the FORMER CLIENTS.
Of course I related as to how my 27 year client relationship seemed to give Fidelity a opportunity to think they could screw me, rehypothecate my accounts, lease out my shares and generally rape and pillage my accounts. Interestingly enough he knew what I was talking regarding rehypothecation So I told him “don’t piss down my neck and tell me it’s raining, sonny boy!’ Da** that felt good!