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I think yeah there.
Forget outrage from occupier of Bank of America -- in the here right now from a group.
Far more important its customers.
A new report on possible fee hikes sparking the rage but someone here says save the -- For Washington.
However want to show the sunny and walk in the cash advance.
Our cash and crew this week rain Rogers Jonathan Hoenig Tracy Byrnes and John late build and joining us this week from the Economic Policy Institute our good friend mr.
-- -- -- Well not all of you and -- to start with you here -- government is to blame for rising bank fees up good did not blame the government Shaq.
My goodness -- they need to -- and the way the most recent 26 billion dollar and Bob foreclosure mortgage bail out garbage.
Paint that other than us because it's -- passed onto us.
Do regulations that -- think that -- a new source of it come these days.
And believe it or not it's going to be -- on you when nine Jonathan if they get spread all the blame on Washington and not cut a look at the banks for some of the responsibility here.
What we've been hearing this -- better part of four years now Sherlund in the government is strangling the banks with these regulations.
And of course the cost is passed -- to the consumers the regulations were supposed to fix the banking system but like housing.
Like that plan to fix the job market it's really only made things -- works and they tell you I didn't see senator Dick Durbin out there protesting -- the occupiers but he might as well have been.
Because here with the US senator telling people to move their money.
Out of Bank of America.
It's happening all over even JPMorgan this week said they can't make money was serving customers with less than a hundred K because of the regulation especially -- -- government program.
To be fair here in Jonathan's point mean it is -- Bank of America and they've been testing this for almost a year this is not new news that -- -- Was gonna try this but a lot of banks are saying look we've got to compete we've got to make up.
For regulatory fees we're gonna have to do it we're gonna have to pass and on the the customers should not be surprised at all.
No we shouldn't be surprised -- -- banks are not as profitable as they used to be but it's not just because of regulations.
And and mortgage bailouts as you call them.
Which by the way are their own doing because of their own illegalities and malfeasance but it's also because -- overexposed in Europe which is battering.
Their balance sheets it's also because their traditional banking business is slowed by having a very weak United States recovery.
But you know bankers -- a whiny bunch because in the middle of all of this they're still able to deliver bonuses at the same rate that they did before.
So this is not all about okay how bad they're doing it's about the choices that -- Sounds on the bank Christian but let me let me take of the -- -- CEO BankAmerica Brian Linehan made a point because lucky because the days are over.
Free checking we can't just lets you use the ATM to go to -- and use online banking and not pay anything for this is only for new customers that's what the CEO.
Wanted to make clear to the media there's really picked up on the story this week.
Well I think it's more complicated than that they did -- it's a fault of Washington but it's the fault of the congress because the congress is allowed for banks we've got four banks in the United States to control of the 54%.
Of the banking assets in this country.
That's a monopoly that's a violation of the free market we do not have competition otherwise the Bank of America could never do this -- -- -- -- because that would be competition I can go across the street if I don't like what this bank is doing to make.
But that the government is fixed that by allowing these banks to amount debate on enormous amounts of -- -- capital.
And they're controlling -- it's a monopoly and they should be broken up.
Why John -- I mean again gone back to the point that this is only for new customers are our choices out there be it may not the only name out there and -- the company.
Has said in in a statement this week there's -- -- airports this morning provided inaccurate information be it may not planning to increase.
Checking account fees with existing customers so if you're new customer -- gotta -- BankAmerica all right.
And correct and your not gonna get many new customers in fact -- get the -- being thrown out -- the system which is exactly what is happening with these regulations -- an amendment specifically.
One point six tree has been taken out of the credit markets but calls of this regulation a good part of it because of that.
Because banks did not have the ability re price risks you have gone on bank in this economy.
From one in four to one in -- some banks are now looking at this and say we can't price risk we're just gonna let these people out of the system completely and now these people this is what bats are -- -- these payday lenders and I debit cards and it in check cashing services we're -- great.
Only -- -- all I.
I didn't banks are also credit unions as well and banks what I have to accept some responsibility here if they're if they're so troubled by how they're able to make money why in the world.
Would -- profits are you -- awarding bonuses at the same rate that is income -- was it doesn't make any sense.
-- what does deletes everything up front that made little medallion -- they really do there.
You bet -- 300 you bridge closings.
Just in the past couple years because banks can't make money that when you talk about all this talk about crimes that's complete separate issue as far as the entire banking center.
Right -- I'm not I'm not Jonathan regulatory issue is one issue we've been talking about this for -- -- -- gonna happen but also like -- got back to the supplement and a 25 prisons billion dollar settlement that came down on these banks.
They -- it's over but they still need to be in business and make money are we being unfair to these guys.
We are being unfair to him through our regulation or regulation Sharyl doesn't punish punish criminals it punishes everybody -- his.
-- -- -- business people just trying to oh I don't know make a buck where where I'm from that's actually a good thing because you're providing a service the more in -- I think you're right there isn't monopoly in baking but it's not Bank of America and Citigroup.
It's the government.
And the more they've got involved.
Would monopolizing banking housing finance in this country the more it is -- the higher the expenses have gone up and the lower the quality of their.
Out right and what what have we need a banking system is congressman -- and all trying to is pitched it.
We meet these -- we need to work in conjunction with them.
Not continued to demonize them and come down on them.
Because all did you the end of the day to Johnson really is heard the lower and middle class people that can't afford to be -- and I.
It imminent but lest we forget that you have but what if they think that.
The -- public -- the German fix the so called the credit card -- his plan to help the credit card companies by slashing their fees.
Butler who's made it harder for lower income folks to get credit and raised fees was seeing the funny thing happened and banks right now.
Kristin let's go back to that fact that you do have consumer choice and actually on the -- is -- -- been talking about the fact that a lot of people are going to smaller thanks to put their money got to put your money somewhere.
They go on a mob bond on the street kind of walking away from -- -- it be about.
And it's community banks credit unions are great alternative unless we all forget we would have no banking system right now but -- for the collective.
Bailouts of the big banks like Bank of America -- you're not.
-- -- -- -- -- -- Late -- -- -- a look small banks big bags they all took.
TARP money but what they paid it back and we move past that still they've now made this settlement doesn't Wear on -- -- and now -- what what is why.
What your your wrong everybody did not take talk money flying public -- are here -- -- hearing is that it's much more complicated than this.
But other upsets me -- 57 because of mark to market but -- of regulations.
That war -- encountered to each other a lot of banks would be -- failures they were merged end of the bank they allow that congress did this it's not about it department regulations problem.
But they'll make the banks come glamour right they got too big and you aren't they are dominated by those four banks that I just mentioned you can't have -- -- controlling.
54% of the banking assets the -- -- did not call that a -- not yet but why did you also have competition let me finish let me things and competently in government say free market and I if you don't have -- can you -- have that.
It's not even.
Right right yeah -- it's not -- but I -- --
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