Govt changes the system:
Once again, the "not exactly humble" chuckleheads in DC decide, beyond hubris, that having bestowed the title of "Masters of the Universe" on themselves, they were fully qualified to completely "fix" our financial system. 500-odd
wiseguys decided that after mastering the task of getting elected, they could change the rules. And that the marketplace would just sit for it.
Thanks to the Frank-Dodd reform act (that would be Congressman Barney Frank (MA-D) and Senator Chris Dodd (CT-D) and in this case, aided and abetted by Senator Dick Durban (IL-D) with his Durbin amendment, capped the fees that banks could charge on debit card usage (and arbitrarily plucked a "fair" number out of thin air that the banks could charge going forward).
Oh, wait – Society adapts:
…Bank of America will begin charging a $5 monthly fee at the beginning of next year for customers who make debit card purchases.
…The move coincides with the implementation of new rules limiting the revenue banks will be able to get from merchants. Beginning this weekend, a cap on the fees banks can charge retailers every time customers swipe their debit cards will take effect.
Having been caught in the act, Govt throws a hissy fit to distract:
“We intend to make it one of the central elements of the campaign next year,” Obama senior adviser David Plouffe said of Bank of America’s recent imposition of a $5 fee for using a debit card. “One of the main elements of the contrast will be that the president passed Wall Street reform and our opponent and the other party want to repeal it,” Plouffe finished telling The Washington Post.
“You don’t have some inherent right just to– you know, get a certain amount of profit.
and guess who is pointing the finger (after actually causing the problem)?
House Democrats are taking their outrage with Bank of America’s new debit-card fees straight to the Justice Department.
Several liberal Democratic lawmakers on Thursday demanded an investigation into whether the nation’s largest banks – including Bank of America, J.P. Morgan Chase and Wells Fargo – are coordinating efforts to raise fees for consumers, contending that would violate federal antitrust laws.
…with Sen. Dick Durbin (D-Ill.) blasting the institution for its proposed increases and telling customers to leave the bank to protest the new charge.
Just pointing out the obvious, that Liberal politicians NEVER seem to take responsibility for what they have wrought.
Just like Jeanne Shaheen (State Senator, Governor, US Senator, NH-D) did here in NH with her Senate Bill 711 that changed the healthcare conditions so radically that all the healthcare providers left NH except for two – and then she rails that Govt has to step in to fix the problem of a monopoly system.
Hey, EVERY single politician in on this deal is a Democrat…and then we wonder why this happens…