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Do crocodiles cry banker tears?

October 1, 2011 - Harry Eagar
Don't believe one single word you have read about the banks and their reluctance to impose fees on debit cards.

The secret banks don't want you to know is that 50% of bank customers generate 150% of profits. The other 50% (me and probably most of you) cost more than we are worth. Banks would love to get rid of us, but it would be disastrous to their image.

But if they can irritate us (well, not me personally. I don't have a debit card) into walking, the better for them, because they can blame gummint.

What they really love, though, is that they can portray their objectionable behavior on regulation. The amount of money involved in fees is negligible, only a few billion dollars. The amount at stake should banks be returned to New Deal supervision is orders of magnitude more.

Nobody needs regulation more. and in the long run, bankers would profit mightily from regulation.

They don't think so, of course, but they've been wrong before.


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