Who’s the Greater Financial Risk — Daniel Negreanu or Bank of America?

Posted by Nolan Dalla on Dec 28, 2015 in Blog, General Poker | 55 comments

Bank of America, one of the world’s largest financial institutions, has terminated all of Daniel Negreanu’s personal accounts.

What would cause a gigantic bank to refuse the business of someone who’s proven to be immensely successful in his chosen profession and poses virtually no financial risk?

Because — Negreanu plays too much poker.

Seriously.

As reported last week by PocketFives.com (Bank of America Closes All of Daniel Negreanu’s Bank Accounts), Negreanu is one of a significantly larger number of full-time poker players and industry professionals who have experienced similar snubs from banks.  Because Negreanu just so happens to be one of the wealthiest, and most publicly visible media personalities, his indignity is the most baffling.

Other poker pros too, including Doug Polk, not only had their bank accounts frozen recently.  Their funds were inexplicably tied up for extended periods of time while their financial institutions (in Polk’s case — Chase Bank) piddled around and played the poker is “too risky” card as an excuse to cut off established ties.

Banks — what a bunch of hypocrites.

Mind you, Bank of America and other huge financial cabals within “Too Big to Fail” monopoly are the same swindlers squeezing college students and graduates by the millions, leveraging hundreds of billions in crushing student debt.  They’re the street corner loan sharks who rip-off consumers with whopping 29 percent interest rates on credit cards and impose hidden banking fees that no one can keep straight.  They’re the racketeers who have essentially bribed members of Congress and de-fanged federal regulatory agencies.  Yet, these are the same banks that once cupped their hands together and begged for tens of billions in bailouts from American taxpayers between 2008-2011, due purely to their own greed and mismanagement, which nearly triggered a worldwide depression.  Now, with bloodstains on its balance sheets, BofA has cut off one of the most successful (not to mention famous) poker players in the history of the game.

Oh, the irony.

Just when I didn’t think it was possible to have more disgust towards the American banking industry, they’ve sunk to even lower lows.  Indeed, for poker players, this has now become personal.  Here’s why Negreanu’s situation matters and why you should care.  It’s time to fight back.

If you’ve been involved in poker for any length of time, you’ve probably been screwed over by a bank, perhaps numerous times (like I have).  Perhaps the teller or the banking official looked at you like you’re a drug dealer when you’ve tried to conduct your normal business.  Maybe the bank flagged your accounts and placed extended holds on checks deposited from casinos.  Or, your bank delayed critical financial transactions inhibiting your ability to wire money somewhere or enter a tournament.  Then, maybe its the subtlety of being treated like a second-class citizen based on what you do for a living.  Fact is — these are the all-too-common hazards of the poker trade almost every player faces.  It’s a level of scrutiny that most certainly never gets applied to other occupations.  Even here in Las Vegas, which should be well accustomed to the unique culture of gambling (there are most certainly hundreds if not a few thousand professional gamblers living in this city), I’ve encountered numerous awkward situations which caused me considerable hardship, entirely because the transactions were poker (or gambling) related.  I could tell you stories that you wouldn’t believe.

READ:  “Bank of America:  Too Crooked to Fail”

When big banks start screwing over the Daniel Negreanu’s of the world, what does that mean for the rest of us — including the many hundreds, or perhaps thousands of other poker players out there who don’t get publicity?  We never hear those stories.  Like Negreanu, many among us have had our credit and debit cards canceled.  We’ve been turned down for mortgages and car loans, despite demonstrating consistent earning power for years and paying taxes.  We’ve had sizable check deposits put on hold unnecessarily for ridiculously long periods of time.  However, since they’re not famous like Negreanu, no one pays much attention.

We all like to think poker’s come such a long way since the bad old days of smoky backrooms and disreputable characters.  But let’s wake up to stark reality, perhaps most glaring in the way we’re often treated by financial service companies.  Have we really escaped our undeserved reputation?  Not really.  BofA’s decision to openly insult one of the game’s verifiable superstars speaks volumes about how much further we all have to go until we’re afforded the same rights and courtesy as professionals which frankly, do not merit an equal level of reverence.  Let’s look at some other professions, for comparison sake.

Here and now, I could give you a lengthy list of professional athletes who have declared bankruptcy — leaving banks holding the bag (passed on to consumers, no doubt).  These are clear cases where banks, among other financial institutions, failed miserably.  And so, I will:

Kenny Anderson, Wally Backman, Charlie Batch, Bruse Berenyi, Riddick Bowe, Randy Brown, Mark Brunell, Bill Bucker, Jason Caffey, Dale Carter, Jack Clark, Raymond Clayborn, Derrick Coleman, Dermontti Dawson, Jim Dooley, Lenny Dykstra, Luther Elliss, Eddie Edwards, Chris Eubank, Rollie Fingers, Archie Griffin, Ray Guy, Tony Gwynn, Dorothy Hamill, Scott Harrison, Steve Howe, Harmon Killebrew, Bernie Kosar, Terry Long, Rick Mahorn, Harvey Martin, Deuce McAllister, Darren McCarthy, Denny McLain, Craig Morton, Greg Nettles, Jonny Neumann, Gaylord Perry, John Arne Riise, Andre Rison, Rumeal Robinson, Manny Sanguillen, Warren Sapp, Billy Sims, Leon Spinks, Sheryl Swoopes, Roscoe Tanner, Lawrence Taylor, Duane Thomas, Bryan Trottier, Mike Tyson, Johnny Unitas, Michael Vick, Antoine Walker, Danny White, Ray Williams, and Rick Wise.  [Note:  This list is incomplete — there are many more]

I could also give you a list of well-known celebrities who have declared personal bankruptcy — leaving banks holding much of the debt (losses also passed on to consumers).  Check out this link for 33 names that you’ll probably recognize:  “Celebrities Who Have Declared Bankruptcy”

There’s even at least one major presidential candidate running who has defaulted on his loans and screwed his creditors, including banks, not once, not twice, not three times, but FOUR TIMES, not counting his other foolish investments that all went bust.  His name is Donald Trump, and he’s leading the Republican field of candidates in the polls right now.  Something tells me the brain trust at BofA won’t be pulling the plug on Trump’s bank accounts anytime soon.  They won’t be closing down the accounts of star athletes or celebrities, either.  Nope — it’s gamblers they’re worried about.

What a crock of shit.

Come to think of it, relatively few poker players I know have declared bankruptcy (and I know a great many).  Oh, I’m sure there are some who have taken that route.  But unlike the pro athletes and famous celebrities, no significant poker pro has been scrutinized widely for his or her financial failings.  Deadbeats are one thing.  Defaulting on mortgages and declaring bankruptcy is quite another.  In fact, I’m even willing to bet the level of bankruptcies (defaults, foreclosures, etc.) for professional poker players is lower than the national average.  It’s certainly lower than other high-profile professions (with guaranteed contracts), including athletes and celebrities.  The reason for this is simple.  Poker players have to manage their money and expenses responsibly.  Otherwise, they’re out of business.  Sure, some poker players struggle financially, and quite a few even end up broke.  But they pose considerably less risk than most other professions to financial institutions, maybe even less risk than the banks themselves.

Here, take a look at Negreanu’s declared net income (after entry fees and expenses) over the past three years, and last year.  Here are two tweets from Negreanu which were posted yesterday:

3 Year Total Events 171 Cashes 37 Cash % 21.6 Buy Ins 5,908,934 Avg Buy In $34,555 Payouts $15,969,992 Profit 10,061,058 Hourly $6426.74

— Daniel Negreanu (@RealKidPoker) December 28, 2015

2015 Poker Results: Events 49 Cashes 11 Cash% 22.4 Avg Buy In $30,880 Hourly $3388 Buy Ins $1,513,125 Payouts $2,482,479 Profit $969,354

— Daniel Negreanu (@RealKidPoker) December 28, 2015

Hmm, I wonder if the CEO of BofA made “$6,426.74 an hour” over the past three years, as Negreanu has managed to achieve?  Perhaps he has, with Wall Street’s shameless bonuses and scandalous compensation packages.  That said, the figures quoted by Negreanu above apply only to his tournament earnings.  We can presume he enjoys a significantly higher income with his lucrative sponsorship and endorsement deals.  Put another way, I’d rather have Negreanu’s income over the next decade than many overpaid CEO’s who are one stock plunge and board vote away from being kicked in the ass right out the door.

Speaking of risks, BofA may be the riskiest investment of all given how poorly they’ve managed their affairs during the last decade.  Here, check out just a few of the misdeeds:

“Bank of America:  Too Big to Follow the Law”

“NY AG Cuomo Hits Ken Lewis, Bank of America with Fraud Charges”

“BofA Bonuses:  Bank Pays Millions, Despite Bailout”

“Bank of America to Get Millions More in Bailout Funds from Treasury”

“Bank of America Needs More Money:  Analyst”

“The Greatest Swindle Ever Sold”

At least Bank of America managed to win one prize that’s noteworthy.  They were ranked DEAD LAST in customer service in a recent study.  The scored near the bottom of the “worst customer service” rankings for the seventh consecutive year.  See:  “Customer Service Hall of Shame.”  At least they’re consistently awful.

I could go on and on about this blatant hypocrisy by the banks.  Fact is, Bank of America has demonstrated a long pattern of disgraceful deeds.  Financial institutions have exhibited a lengthy habit of unfair treatment towards poker players and other forms of gambling.  They’ve also insulted not just Daniel Negreanu, but all poker players by cutting off one of gambling’s biggest successes.  Bank of America doesn’t merit our business.  They deserve our disdain.

Bailout Scoreboard:

Bank of America — 1

Daniel Negreanu — 0

If and when, the time eventually comes when Bank of America asks for another big bailout (and it will probably happen), I have a few choice words not only for them, but for all the banks.

Fuck off.  Given your past dirty deeds, you’re not worth the credit risk.  

Credit:  Photo of Daniel Negreanu courtesy of NorwayGamingHill.com

Postscript:  My position is that the big banks should be broken up as trusts and should not be permitted to engage in riskier forms of financial speculation.  At the very least, previous Glass-Steagall regulations should be reinstated which would return banks to the constructive role they once played in the economy.