FOR IMMEDIATE RELEASE
September 30, 2011
ABA Media Contact: Jeff Sigmund
(202) 663-5439
E-mail: jsigmund@aba.com
Follow us on Twitter: @ABABankingNews

         "Recently a number of banks have announced new fees for bank services.  Make no mistake about it – these fees are the direct result of government price fixing that has fundamentally altered the economics of offering a debit card. 

          "One prime culprit is the so-called "Durbin Amendment," which capped debit card fees below industry costs.  This provided big-box retailers with $7 billion in windfall profits while forcing banks to lose money on every debit card transaction.  Many economists predicted that this direct transfer of costs from retailers to everyday Americans would result in higher fees for basic banking services and threaten our nation's community banks.  Unfortunately, we are now seeing that result.

          "The Durbin Amendment and its consequences are symptomatic of a broader problem.  Massive amounts of new regulation, government constraints on earning revenue and a tough economy constrain banks from helping our economy get back on track.  Policymakers need to take a hard look at the real cause of higher consumer costs.  There's much to be learned."

            The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its two million employees.  Learn more at aba.com.

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