Thursday, October 21, 2010

Unintended Consequences: Financial Overhaul Bill Causes Banks to End Free Checking

The boatload of new regulations imposed on banks as part of the Democrats financial overhaul bill has put a severe strain on bank profitability. Since banks are in the business of making a profit, they are taking steps to shore p the bottom line. One of those steps is to end free checking. Every-time the government intervenes in private markets there are unintended consequences.

AP reported:
Almost all of the largest U.S. banks are either already making free checking much more difficult to get or expected to do so soon, with fees on even basic banking services.

It’s happening because a raft of new laws enacted in the past year, including the financial overhaul package, have led to an acute shrinking of revenue for the banks. So they are scraping together money however they can.

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