Report: B of A customers can expect more fees
The bank isn't giving up more than $1 billion in revenue so easily.
By Dan Freed, TheStreet
Bank of America (BAC) may have backed down from its bid to charge users of its debit cards $5 per month, but if you think that's the end of the bank's attempts to gouge its customers, you are living in a fantasy land.
"Eventually they've got to get that money back," Jefferson Harralson, an analyst at Keefe Bruyette & Woods, told the New York Post for an article published Wednesday. "I think you're going to see other types of fees come up."
According to the Post, fees "could emerge as increases in minimum balances, banks hiking monthly fees, maintenance fees and fees for using ATMs for non-customers." The newspaper cites Harralson's estimate that Bank of America will lose $1.2 billion to $1.4 billion in annual revenue from killing its debit-fee plans.
Bank of America was the most aggressive of the big banks when it came to the debit card fee, though Wells Fargo (WFC), JPMorgan Chase (JPM), SunTrust (STI) and Regions Financial (RF) all had similar designs before backing away from them in recent days.
Whether customers will tolerate other hidden fees -- or whether the banks can do anything to win Occupy Wall Street sympathizers back as customers -- remains to be seen, as public animus toward the banks gathers momentum. Indeed, the bank fee debacle may be seen as an early victory for the movement known as Occupy Wall Street.
Related Articles
I was a customer of their's for 12 years. Switched today from them to a credit union. The notice in the mail about them wanting to charge me a fee for transfering funds between 2 checking accounts that I had linked under the same account months ago was the clincher. This bank needs to shove it's fees up it's a$$ and collapse already.
Wait, everyone is looking at this all wrong. Even Jefferson Harralson, an independent analyst sees this as lost revenue. The TRUTH of the matter is that banks have been using overdraft fees, ever-increasing debit swipe fees, ATMS vs. salaried tellers and a whole slew of other things to increase their profit margins beyond historic levels. What kind of profits did they see in the mid 20th Century back before any of this existed and, Heaven forbid, before people actually carried balances and paid interest on their charge cards? (that's what they used to be called back then, because they weren't for carrying credit balances for eternity)
Perhaps banks need a lesson in how good they have it now - even with regulations stemming this rampant fee-profiteering. They haven't LOST any revenue, its only been partially returned to the revenue levels they used to have. If they want profits, perhaps they should try to earn it the old fashined way - lend money/collect interest.
I have had the same checking account with them since 1997. When they start added charges to me i will move on to something else as they have no loyalty what so ever so why should i? Also the banks would'nt be doing this crap if the bailout did'nt happen. No company is to big to fail there is always another to fill they void let them fail and lets start over
You can 'bank' on Bank of UNAmerica getting even with the people for speaking out against the Debit Card Fee. They will jack up other fees on their "loyal" account holders in another manner. I wouldn't be surprised if you don't see fees for Direct Deposit Transactions. Because if you AVOID those, then they can nail you a monthly fee for NOT having Direct Deposit (one of their fee waivers).
4.4 BILLION DOLLARS they paid out in just BONUSES last year. If they had just paid HALF that amount, they would have easily absorbed their losses for the debit card transaction fee law for the entire year. If those fat greedy money sucking PIGS at the trough would have done with LESS.
But, that doesn't happen with the weathiest and the greediest. Even if they make decisions that will potentially KILL their company, if they can get FAT BONUS checks, they dont' care. And, if they get fired for ruining the company, they will enjoy 10, 15, 20+ MILLON dollars as a "get the hell out of here" payment.
LEAVE Bank of UnAmerica and let them FAIL. Show the rest of those greedy PIGS in other companies that no company is too big to fail and what AmeriCANS *will* do to those who try and screw us.
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
STOCK SCOUTER
StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.
126 | 258 | 459 | 599 | 671 | 683 | 601 | 455 | 269 | 113 |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
LATEST POSTS
Try as the bears might, they couldn't break U.S. stocks. But investors still face frothy prices and considerable headwinds.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.