Here's a look at what's news in banking and finance:
- Bank of America made hundreds of headlines by announcing it would drop its much-derided $5 debit card fee. The Seattle Times says the bank finally got a clue. The Star-Ledger says its the right move. And a New York Times blog wonders whether this is a signal that consumers are gaining more power.
- Bank of America is foreclosing on a Texas home that no longer exists after it was wiped out by a hurricane, the Houston Chronicle says.
- The cost to protect against corporate default, including for Bank of America, jumped as investors worry the Europe bailout plan could fail, Bloomberg reports.
- Banks around the world are cutting personnel costs, by far their biggest expense, the Wall Street Journal reports.
- The leader of the world's largest bond fund says banks haven't done enough to raise capital levels, Reuters reports.
So, what's your take on Bank of America cancelling the debit fee? Is it enough to help restore the bank's image?
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2 comments:
Glad to hear they cancelled those plans. Probably should have went the route of Wells Fargo and "tested it" in areas before announcing nationwide plans.
I am sure they will still need to make up the lost revenue somewhere else or there will be even more people out of a job. That should make the Occupiers happy, right?
So the question is now, where will they get the $5 from? I remember when they rolled out ATMs. Banks claimed it would SAVE us money because they were so much cheaper than bank buildings. Now they want $3 a pop to use one. Then came electronic transfers. Again, a promise to save us money as there is no paper to track, process, etc. But most banks want a $20 fee for a wire transfer. Then debit cards. Oops, $5 a month. That one was too expensive and too transparent. Where will they get it now?
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