All Commentary
Friday, September 30, 2011

Banks Respond to “Reform” by Imposing Consumer Charge

“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. 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.” (New York Times)

Squeezing the balloon.

FEE Timely Classic
“Unintended Consequences” by Steven Horwitz