New US banking fees and unbridled greed

Posted on Thursday, October 06, 2011 at 09:51 AM

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Pity America's poor banks. After bringing us the biggest meltdown of the world economy in history, now they find they can't go on another day without further maximizing their record breaking profits.

When the Obama administration stepped in to put an end to the geyser of ridiculous charges, fees, and dodgy rates, for a while there it looked like the banks didn't know who to shakedown.

Fear no more. Our banks have found brilliant new ways to charge the under privileged for the privilege of being allowed to use their own money.

First Bank of America announced that your debit card is about to start charging you money for holding your money - and soon they're going to start charging you money for giving that money back to you too!
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Ain't capitalism grand?

It's because the US banking sector was told they would have to charge retailers slightly lower fees on debit card transactions - and regulations adopted in the aftermath of the bank bailouts reduced revenue for their highly controversial fees by billions of dollars.

The only way for an average customer to avoid Bank of America's new fees now is to take out a Bank of America mortgage or deposit $20,000 in the bank (I'm sure you have it stashed away somewhere) - alternatively you can simply use your debit card for ATM transactions, which will remain free.

Those are your options now.

Not by be outdone by Bank of America's bold move, Citibank announced yesterday it's raising monthly fees for checking accounts—doubling them for its mid-level option - and raising the minimum balances.

What this means is that the banks have identified the customers with the least amount of money, and have devised a way to charge them more.

It's seems incredible to me that our major banks would start acting like a monopoly just at this painful moment in our history - as the anti-Wall Street, anti-corporate sentiment that has lingered since the bailout and the start of the great recession seems to be coming to a head - but then, we live in a two-tiered America now, where our gilded class never concern themselves with the consequences of their pursuit of profit.

Next they'll be asking for tax cuts for death creating, won't they? Will they be surprised when we're in no mood to oblige them?

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michaelidaho | Oct 07, 2011, 11:22 AM EDT

@hollabackgurl Citizens Bank

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EphraimKibbey | Oct 07, 2011, 12:09 AM EDT

@ JohnKinMD - How we all got here: Step 1. Relaxed regulations allowed US banks and Wall Street to bundle US morgages with a few good ones on top of a bunch of stinker ARMs. Step 2. S & P rated them as though they were the solid individual fixed rate US morgages of the past. Step 3. Banks around the world (Ireland included) bought these time bombs. Step 4. The new FED chairman raised the prime rate after years of being kept low under Greenspan. Step 5. The stinker ARMs all went up above the ability of the already overextended US homeowners to pay. Step 6. the US homeowners defaulted on there morgages in droves. Step 7. all the banks that owned these became insolvent (including Ireland's.) Step 8. The Wall Street crooks came out OK because they had hedged there bets by betting that these morgages would fail. Step 9. Bush and Geitner have US tax payers bail out the US banks (and SOME big overseas investors but not the Irish banks) but do not include demands that the banks help get the economy going again by lending to businesses. Step. 10 Obama underestimates the depth of the recession and sadly expects banks and corporations to do the right thing by the tax payers. Ergo, Our banks did unto your banks.

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JohnKinMD | Oct 06, 2011, 03:46 PM EDT

Just what does this have to do with Ireland?

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cillowen | Oct 06, 2011, 02:28 PM EDT

What is Obama doing about - he showered these blood-sucking crud with taxpayer money and they in turn with big businesses raised the costs of foodstuff and nigh everything. The BP disaster payout was recouped within months - yet wise Obama waltzes for his oligarchical masters. We say his weasly rhetoric at UN - I wanna puke at the thought.

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nosoupforU | Oct 06, 2011, 01:07 PM EDT

I work, my kids have a father, I pay my bills, I own my home. I'm the 99

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hollabackgurl | Oct 06, 2011, 12:52 PM EDT

Congratulations on finding a bank that actually gives you money for using it's services MichaelIdaho. Can you give us the details so we can all do likewise? You are serious, arent you? You must be one of the five people in Amercia who believes Herman Cain when he says if you're not rich it's your own fault.

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Nicomax | Oct 06, 2011, 12:35 PM EDT

It is not just the fact that the monied ones feel they should not be penalized with either regulations or increased taxes, but just the opposite, they should be rewarded for being so swift and clever. Remember, only little people pay taxes. [Leona Helmsley circa 1975]

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michaelidaho | Oct 06, 2011, 10:34 AM EDT

Capitalism is grand Cahir. Just take your Bank of America account, shop around and find a bank with a better deal. My bank gives me money each month simply for using online banking. Note to Cahir: The U.S. government is not forcing you to open a savings or checking account at B of A.

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soccernet | Oct 06, 2011, 10:08 AM EDT

always on the money this guy

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