"Fees surge as banks hunt for revenue; Customers whose balances slip hit with $50 levy" by Todd Wallack Globe Staff / January 9, 2012
Many bank customers have long felt nickeled-and-dimed by fees imposed by financial institutions. But now some banks are demanding much bigger denominations.
The region’s largest banks are charging consumers as much as $50 a month if they do not maintain minimum balances or meet other requirements for certain high-end checking and savings accounts.
Time to TAKE YOUR MONEY OUT of the BANKS!
Citizens Bank charges customers $50 a month when the balance in a top-end money market account slips below $1,000. Sovereign Bank imposes fees of up to $30 a month, and Bank of America and TD Bank each charge $25 a month whenever customers fall short of minimum balance and other qualifications for some premium checking accounts.
“I haven’t seen anything like $50 a month before,’’ said Greg McBride, an analyst with Bankrate.com, a website that tracks bank fees and interest rates. “That’s a steep price to pay.’’
The sticker shock is the latest sign that US banks are pushing fees to new heights to boost revenue and shed unprofitable customers with slim balances.
Then why was I raised on the idea that banks are there to help you?
Since 2009, banks across the country have more than doubled the average monthly maintenance charge for basic checking that does not pay interest, to $4.37, according to Bankrate.com.
Bank profits have been pummeled since 2008 because of steep losses on mortgages, tepid demand for loans, low yields on investments, and new regulations. The biggest banks have lost billions of dollars in revenue from new rules reducing the amount they can collect in debit card fees and limiting overdraft charges.
Really? The big banks have been pummeled and lost billions, huh?
"Most of the big banks reported third quarter gains. You may have heard that Bank of America reported a $6.2 billion profit, despite handing over its spot as the number one bank in America to Chase, which had an overall quarterly gain of $4.26 billion. Citigroup had a quarterly gain of $4.8 billion, and Wells Fargo gained $4.1 billion. Even though these aren't big enough numbers to have investors jumping for joy, there are certainly worse problems to have.... Banks with assets exceeding $10 billion drove the bulk of the earnings growth. They made up 1.4 percent of all banks but accounted for about $29.8 billion of the industry’s earnings in the third quarter. Those are the largest banks, such as Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. Most of these banks have recovered with help from federal bailout money and record-low borrowing rates."
What "losses" are they talking about?
Related: Banks Reserve Profits For Themselves
Also see: Bank of America reverses loss and earns $2b
That's one of the few earnings statements I've seen reported recently in my banker's Boston Globe.
Yeah, the poor, poor banks who must resort to price-gouging looting to make up for all the lost loot. No wonder no one reads newspapers anymore (including me; I'm going on my third day as the Globes pile up around me). Who wants to be constantly lied to and insulted?
“Banks have been trying to recoup some of those lost revenues,’’ said Richard Barrington, senior financial analyst for MoneyRates.com, a financial website that tracks bank rates....
Yeah, for over more of your money for giving them the gift of handling it for you, American consumers.
Remember, the poor banks need it so they can make another billion or two the next three months.
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Related: The Boston Globe's Fine Print
Better read it all:
"Ever-changing prices may have hidden cost" by Nick Bilton | New York Times, January 09, 2012
Economists call this dynamic pricing. It is deployed by a small number of businesses, like hotels, airlines, and car rental companies, which raise prices on weekends and holidays when demand surges....
In certain quarters that is considered extortion.
In AmeriKa it's just BIDNESS as USUAL!
Companies have to be prepared for repercussions, however. In 1999, Coca-Cola’s chief executive mused about vending machines that would raise prices for drinks as the temperature rose. The outcry was a public relations nightmare.
“Because this is so new,’’ said Travis Kalanick, cofounder of Uber, a service that allows people to order livery cabs via a smartphone. “It’s going to take some time for folks to accept it.’’
Hey, consumer, once your ass gets pounded a number of times it loosens right up. Just accept it.
“If you’re a pure economist and following the laws of supply and demand . . . then it is not excessive,’’ said Liran Einav, a Stanford University economics professor. “But that all depends on the type of long-term relationship you want to build with your customers.’’
I don't know; I don't like to have long-term relationships with people who steal from me.
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Related: Incoming Phone Call
You wanna get that, readers?
