kiplinger.com — Small banks won?t fare as well as their bigger competitors over the course of 2010. ?Unlike larger banks, small community banks will be shut down if they can?t cover their credit losses,? says Mark Calabria, director of financial regulation studies at the CATO Institute.
Jan 5, 2010 View in Crawl 4
tmbrownJan 6, 2010
By government, yes.
needcoffeeJan 6, 2010
What I would truly like to see removed, is block posting.Say you have 5, $10 payments coming in and you have $49 in the account. Granted you did overdraft so I understand sucking it up and paying for that 1 OD fee. But due to block posting all 5 come through as a virtual "one lump sum" so they all over draft and you're stuck paying 5*$28-$36 in OD fees.
whorunbartertwnJan 6, 2010
Awww c'mon that's not as good as a year when so many diggers were predicting thousands of banks would fail in 2009. End of days, buy canned goods, etc.Or, maybe you were one of 'em and this is a new muted version.
whorunbartertwnJan 6, 2010
Yup, assuming no new banks open we'll be down to well over 7000 banks. Monopoly any day now.
troypdxJan 6, 2010
And I keep seeing people like you defending their practices. People make mistakes. I have perfect credit and had never been overdrawn in my life, but once I made a miscalculation when transferring between my savings and checking. A couple of small transactions later, I was 6 bucks overdrawn and was hit with $70 in penalties. It's wrong because it's usury. It's wrong because they game the system to make sure all your small debits post before any credits. It's wrong because they make billions off the small mistakes of their customers, and then reward themselves tens of millions in bonuses. It's wrong because they use our money to gamble in equities and bulls**t derivatives leveraged at 40 to 1 or more, and then get bailed out by our tax dollars if they f**k up. It's wrong because it's an oligopoly and they've all conspired to set these high fees and screw people over. It's wrong because they have the technology to make all transactions go through instantly, but they like delays because they want you to overdraw.Personal responsibilty my ass. How condescending. They are scumbags and thieves. They got rich on the housing bubble by giving loans to people they knew couldn't pay them back, and then bundling and selling those loans as 'investments' overseas. They got rich on the bailout. They get rich on these fees. They never lose and they buy our politicians to make sure they'll never lose.
whorunbartertwnJan 6, 2010
Who's Sandy?
dondiegohandsomJan 6, 2010
We prop up the big rotten banks and let the little ones die alleviating any competition. I think I'll call it "reverse capitalism"
amusedtodeathJan 6, 2010
@TroyPDX: Well, you're mixing all kinds of other nonsense into the discussion that has nothing to do with overdraft fees, but to address your first paragraph:True, sometimes a mistake can happen, but I think it would be disingenuous of you not to admit that most of the time these fees are triggered because people are sloppy bookkeepers and don't manage their personal finances properly. It's also not usury, because the fee is a penalty, not interest on a loan. What do you propose they do when people write bad checks for money they don't have? Should they loan you $50, $100 or $500 on the spot with no interest or fees, just because? They could return the checks as unpayable, but writing a bad check is a criminal offense in many states. Would you prefer they let you get into potential legal trouble instead of charging you a convenience fee. Banks, like any other business, exist to make money, not to provide you with a personal unending line of credit. When you open a checking account, you get a little booklet that explains in detail all of the fees they charge related to that account. If you don't want to incur those fees then DON'T OVERDRAFT YOUR ACCOUNT.
gkiltzJan 6, 2010
Given the depth and breadth of the recession, not an outrageous number. A lot but not a hell of a lot!