Bank fee’s. Your thoughts

There is a debate going on in my house about BOA’s decision to charge a $5 fee for using your debit card and who’s fault it is. In my opinion, after doing minimal research(cause that’s how i roll) everyone is to blame. It starts with the Retail association who lobbied congress and filled Se. Dick Durbins campaign coffers to get the fee’s charges to retailers reduced. Then Durbin stands up and pretends that he is fighting for the common man by ridding us of these outrageous fees that we never actually see or pay. Finally, BOA says screw you to Washington and charges its customers directly for the money it’s going to lose in processing fee’s.
While doing my,um, research I came across some numbers. The original amount the banks were allowed to charge was .44 on every transaction. The new amount will be .22 plus a percentage based on the transaction amount. BOA claims that under the new rules they will be losing $2 billion a year.Thats a lot of coin, which made me think before the law they were bringing in about $4 billion a year minus whatever Visa/Mastercard gets. $4 billion a year? For what? 4 billion or 2 billion it’s all profit for nothing. When you go to Walmart or wherever and use your debit card the amount is automatically deducted from your checking account instantly with NO human interaction. Once the infrastructure is in place the processing of the transactions costs the banks pretty much nothing.
Which leads me to this. All told, between all the banks and credit unions out there that have customers that use debit cards, how much money is being siphoned out of the private sector and into the banks every year? Don’t get me wrong, I’m not about to sit here and cry a river for Walmart but a lot of that money could be used by the retailers to expand, create job, pay better wages, provide health coverage, lower prices, etc.. Now I’m not saying that the retailers would reinvest that money wisely (hell, it may all go to corporate bonuses) but I am saying the money would be best served floating around in the economy not sitting on a banks balance sheet being used to hide other bad investments.
At the end of the day I’m not antibank. I am Anti BOA. This whole thing just looks shady to me. BOA is in huge financial trouble. Their stock price is about $5 and they has to take a loan from Warren Buffet after he was prodded to loan them the money by Pres. Obama. Thats right, instead of a bank making a loan to an individual. The individual had to make a loan to the bank. Fast forward a couple of months and presto bank BOA needs more money.
What do you think?

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