Comments on: Lunchtime Links 8-10 Option ARMageddon Tue, 14 Oct 2014 13:06:34 +0000 hourly 1 By: Apt604 Mon, 10 Aug 2009 22:19:27 +0000 “Mission accomplished moment” sums it up pretty well . . . except that this mission is going to be a hell of a lot more expensive . . .

By: Andrew Mon, 10 Aug 2009 19:52:08 +0000 So… I’m sorry banks aren’t not-for-profit enterprises? Want not-for-profit? Join a credit union, where you’ll still get hammered with NSF/OD fees.

Is there an estimate of how much in NSF/OD fees are waived each year by banks?

Is there an estimate of how much in NSF/OD fees go uncollected?

This annoys me because this article makes it sound like retail banking is a gold mine, when in reality it is a very thin margin business. The fees charged to customers are really just offsets for the backoffice expenses incurred to provide the services that most people take for granted. Branches are expensive, yet most banks don’t charge you to use a teller or have an account. They used to… even I remember that and I’m not that old. AND they charged NSF/OD fees as well. Banks don’t directly pass along interchange fees, the cost of processing checks or electronic transfers, or even FDIC insurance expense. The benefit to the bank is of course cheap funding and the opportunity to lend you money. You lower OD fees too much and people will start using it as a revolving credit facility. They’re meant to hit you in the face and encourage behavioral changes.

I mean, $38B? We’re pitching a fit over $38B in revenue for the banking industry? We’re in here talkin’ ’bout practice? Not a game… not a game. Practice. (Allen Iverson rant, for those not getting the reference). That’s less than 1Q of revenue for BAC.

I can get behind making it easier to opt out of “overdraft protection”, but I’m not sympathetic. Manage your money better. Learn a lesson. Use cash or just do *something* different. Don’t tell me about the big bad doctor’s bill you get every time you accidentally drink a little bleach.

Sorry… story’s been under my skin since this morning.

By: Steve Roberts Mon, 10 Aug 2009 18:51:49 +0000 If Krugman is saying that Big Government averted another second depression, how does he explain that fact that he was bashing the administration for not spending enough money to fix the problem?