Bankers' Association Blames Government For New Fees

[underpants]

Source: Consumer Affairs

The American Bankers Association (ABA) is blaming what it calls “government price fixing” for new bank fees, manifested most recently by Bank of America's $5 a month charge for customers who make debit card purchases.

In response to a significant consumer outcry over the Bank of America fee, ABA President Frank Keating says new government rules that forced banks to lower the fee collected from merchants for each debit card “swipe” has fundamentally altered the economics of offering a debit card.



The Durbin Amendment bears the name of Sen. Dick Durbin (D-Ill.), who authored the legislation. Durbin sees the issue a bit differently, and disputes the notion that banks are losing money on every debit card transaction. In fact, he called the old fee – 44 cents per transaction - “unreasonably high.”

The Retail Industry Leaders Association (RILA) agrees, citing Federal Reserve data that it said showed the old fee, which was 44 cents but is now 24 cents, netted banks a profit of 1100 percent on every transaction. RILA says it's still a pretty hefty profit.

“Crying poverty and adding fees, all while collecting a 600 percent profit on every transaction is one heck of a public relations strategy,”said RILA spokeswoman Katherine Lugar.





Read more: http://www.consumeraffairs.com/news04/2011/10/bankers-association-blames-government-for-new-fees.html

[msongs]

1. hey Durbin, remember this next time those billionaire bank CEOs ask for welfare nt

[Vincardog]

2. I blame the greedy financial parasites running the banks For New Fees

[underpants]

5. You can't base your operation on 1100% margin and expect it to last

Those suits who get such high pay for their MBA's knew that but thought they could buy off the system - with 1100% profit you usually can - but then they ripped each other off and :nuke: poof it all went away

[tridim]

3. I hope they're losing millions of customers.

[SkyDaddy7]

6. That is the problem! Most people will simply...

complain, pay the fees & remain BoA customers...If customers left on huge numbers the banks would change their ways!

[Angry Dragon]

4. Then they need to open their books so the people

can see how unfairly banks are being treated
nothing to hide, then open your books

[bongbong]

7. 1100% profit?

Not enough. The engines in their giant yachts get like 50 gallons to the mile. Fuel isn't cheap. We need to keep that in mind for the suffering bankers.

[plumbob]

8. Is this Keating related to the savings and loan crook?

So happy I left banking behind in '78.

[Yon_Yonson]

9. Bankster + greed + corruption = I ain’t paying your fucking fees

[bluedigger]

10. You see, the problem is, if you make 1100% this year, we'll need 1200% next year...n/t

[underpants]

13. Right you have to "beat the street"

part of the initial problem was that people were convinced that making a regular profit or ROI was not good enough. Arbitrary estimates from people playing games with our 401K money - because we can't have actual professionals managing pension plans. :sarcasm:

[SoapBox]

11. Hey Banksters and all of your Corrupt Ilk...I have a response for you!

*FINGER*

[nineteen50]

14. ****

The public sector has taken on the debt created by the
financial sectors crashing the economy and now it is time for
the financial sector to repay its debt with a substantial
financial transactions tax.

[SoapBox]

12. oh ya...and, GO Credit Unions!

...haven't belonged to a Bankster place in 30 years.

[glinda]

15. All of our Utility Companies blamed Obama in letters to us. Sure, why not.

[Downwinder]

16. The Devil made me do it excuse.