Cause and Effect

Economics 101 people, econ 101:

Bank of America, the nation’s biggest bank, said on Thursday that it planned to start charging customers a $5 monthly fee when they used their debit cards for purchases. It was just one of several new charges expected to hit consumers as new regulations crimp banks’ profits.

Wells Fargo and Chase are testing $3 monthly debit card fees. Regions Financial, based in Birmingham, Ala., plans to start charging a $4 fee next month, while SunTrust, another regional powerhouse, is charging a $5 fee.

And why are banks now looking to charge their customers who use their cards to access their money?

The round of new charges stems from a rule, which takes effect on Saturday, that limits the fees that banks can levy on merchants every time a consumer uses a debit card to make a purchase. The rule, known as the Durbin amendment, after its sponsor Senator Richard J. Durbin, is a crucial part of the Dodd-Frank financial overhaul law.

This shouldn’t surprise anyone except Liberals:

The More Liberal You Are – The Less You Know About Economics

If Obama simply announced he wasn’t running for President in 2012, the market would go up by 1000 points.  I guarantee it.

Leave a Reply