Tuesday, March 13, 2012

Dodd/Frank won't go away

Newsday reports that Dodd/Frank has made accounts with less than $100,000 unprofitable. They are outraged that the banks are raising prices and discouraging people with less than $100,000. The writer says it is a pracitial problem for consumers.
It is also a practical problem for the banks. What is a rational business supposed to do? Maybe the writer thinks they should lose money on the majority of its customers and make it up in volume. Of course they look to alternative sources of income through higher fees. Exactly who does Dodd/Frank help? The protections needed had nothing to do with credit card fees and other consumer account fees. Dodd/Frank just limited the fees on people who overdraw their accounts. So the banks raised fees on everyone. Another great job by two guys who ran away from the results of their social experiments. Laughable.

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