Bank of America is announcing new fees for services in the wake of lost revenues stemming from Dodd-Frank. Congress tried to “help” consumers by restricting banks from charging fees on debit card transactions (interchange fees). But banks can’t just ignore hundreds of billions in lost revenues. They will have to make that up with reduced services or increased costs. For BoA, both hits are coming:
Bank of America will charge clients new monthly fees if their accounts do not meet a minimum balance, the bank’s CEO Brian Moynihan said on Tuesday.
“We will increase the account balance minimums or charge monthly fees in lieu thereof, which is the choice of the customer,” Moynihan said at a Barclays Capital conference in New York.These and other measures will allow the bank to compensate for revenue lost due to new regulations put in place following the 2008 financial crisis that led the US government to salvage many bank with massive bailouts, he said.
“Over the next 12 months, we will reset the entire product line.” Bank of America has recently introduced a new account, called e-account, offering reduced fees for customers using automated services, while reducing the number of branches and staff in a bid to cut down costs, he added.
“That provides the customer with a choice, a monthly fee or to be served through automated means in these statements.”
Read this whole story from Breitbart News here.
Also remember that they also tried to help consumers with the CARD Act… but that too just led to an increase in fees and interest rates, much to Congress’s chagrin.