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2 Bumps

Banks eye higher fees to boost declining revenue


NEW YORK – Big banks facing big drops in revenue are looking to Main Street to make up the difference.

Checking accounts, bank statements, even popping into your local bank branch could carry a hefty cost as the nation's mega-banks scramble to offset expected damage from the sweeping financial overhaul. The uncertain future has overshadowed otherwise strong second-quarter earnings at JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp.

All three companies beat expectations this week with profitable results. Yet their stocks tumbled, helping send the wider market sharply lower Friday.

The reason: Investors are worried about banks' future earning power after Thursday's passage of the most dramatic rewriting of banking rules since the Great Depression. Adding to the pessimism are falling trading profits — which all three banks mentioned in the their earnings reports — and weak U.S. loan demand.


Surprised?

 
mancosmomma

Asked by mancosmomma at 4:19 PM on Jul. 18, 2010 in Politics & Current Events

Level 19 (7,315 Credits)
This question is closed.
Answers (12)
  • Not at all. I am just surprised that there seems to be such ardent support for this type of reform when we see over and over again that the only people that are effected by this type of policy is the consumer. Banks and businesses are not going to take a hit without passing the pain onto the customer.

    QuinnMae

    Answer by QuinnMae at 5:29 PM on Jul. 18, 2010

  • They need to collapse the economy so they can "fundamentally change" America. Every bill they have pushed is designed to do just that.
    Carpy

    Answer by Carpy at 6:26 PM on Jul. 18, 2010

  • I was sure someone said this was going to happen. I think maybe it was me.

    No, wait, It was Carpy or Lorikeet.
    lovinangels

    Answer by lovinangels at 7:01 PM on Jul. 18, 2010

  • Not at all surprised - they knew exactly what the result of that reform would be when they wrote it - that's econ 101 stuff. Although, admittedly, there seem to be quite a few dems in office right now who appear to have slept through that class.
    NotPanicking

    Answer by NotPanicking at 10:01 PM on Jul. 18, 2010

  • Natesmom: I've been saying the same thing on here for months. Read the damn book. To know your adversary (yes, I called the dems in power now adversaries because some of them have put themselves in that position - calling no one by name.) is to know how they think and plan. Alinsky is not only PBO's guru, he taught his strategies at Harvard. You will be surprised just how many of the rules are used when you start paying attention to what is going on and then applying them back to the Rules for Radicals. It is disconcerting.

    jesse123456

    Answer by jesse123456 at 9:06 AM on Jul. 19, 2010

  • mancosmomma

    Comment by mancosmomma (original poster) at 4:19 PM on Jul. 18, 2010

  • Nope not at all.

    Banking institutions make the bulk of their profits off of fees. Billons of dollars a year worth of profits. So of course they are going to do whatever they can to keep that money training rolling. Banks are businesses, in business the bottom line is usually what matters the most. The more profitable the better.
    pixie_trix

    Answer by pixie_trix at 4:24 PM on Jul. 18, 2010

  • Nope. Banks are in the business of making money not helping citizens. They cant increase revenues without constantly looking for new ways to squeeze customers.

    Personally, if you're making enough money to pay someone a $100,000,000, I'm not quite sure what you need to increase revenue for...seems like you're doing okay to me.
    UpSheRises

    Answer by UpSheRises at 6:14 PM on Jul. 18, 2010

  • Not surprised. Just like with any other industry, profit is the name of the game, and when economic downturns occur, the burden is placed back on the consumer in order to boost up revenue. Consumers have a choice in where they invest their money.
    Sisteract

    Answer by Sisteract at 6:25 PM on Jul. 18, 2010

  • LOL, Lovin! I do remember someone saying something to that affect a while back..... Can't remember who..... LOL
    mancosmomma

    Comment by mancosmomma (original poster) at 7:37 PM on Jul. 18, 2010