Congress Gets Into Our Pockets……Again

Last year the Congress signed into law the Dodd-Frank Law and in it was an amendment
by Senator Dick Durbin (D-IL). Senator Durbin sold his amendment to his collegues as
consumer friendly. In reality it placed a bunch of new burdens on financial institutions
and their customers, that’s you and me.

Durbin’s amendment now limits the amount of money banks can charge merchants when
you swipe your debit card when making a purchase, and that is going to cost banks an
estimated $6.6 billion, that’s with a B. But you don’t think that the banks will just
absorb that loss, do you? Of course not, those costs will be passed on to the consumer….
that same consumer that Durbin said his bill was friendly to.

So, last week, the Bank of America said it was imposing a new fee in anticipation of
a $2 billion annual loss, that’s with a B, brought about by the Durbin amendment. The fee will be
$5.00 monthly fee for making debit card purchases starting early next year. The fee will not apply
to customers who do not use their debit card to make a purchase or who only use it
to make ATM transactions.

But the Bank of America is not the only bank that will lose money….Wells Fargo expects
to lose $1 billion, that’s with a B. They’re going to adopt a $3 fee for debit cards in some
areas. Citibank and JP Morgan Chase are also contemplating fees.

Also, free checking accounts have declined and are expected to decline further as banks
cut back to adjust to recent regulatory changes due to the Dodd-Frank Wall Street financial
reform bill. This bill and it’s amendments were sold as consumer friendly but any regulation
that increases consumer costs and raises consumber debt is patently anti-consumer and is
economically destructive.

Let’s not blame the banks for this sharade, this cockeyed Congress has put another
one over on the unsuspecting public and they are the ones to be held accountable. The
Republicans tried to kill this bill, they knew what was going to happen but unfortunately
didn’t have the votes, as the Democrats had the majority. Let’s just see if we can turn
this picture around and replace these scumbags with a Republican President and a Republican
Congress in the 2012 elections.

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