Unformatted text preview: Bernanke, Bair, and others testified that the regulation will hurt small banks. Small banks have said that they expect to charge higher checking account fees as well. WSJ Headline March 1. Checking Will Stay Free, Says PNC Bank. PNC, the 6 th largest bank with $183 billion in assets and 2,470 branches, announced that it would not go with the trend of charging for checking in response to the loss in revenue from debit card transactions fees. However, it said it would respond with getting rid of other customer perks, like debit-card rewards, and ATM fee reimbursements for using non-PNC ATMs. Questions: 1. Why did Congress put the Federal Reserve in the business of setting retail prices for bank services? Did the fees have anything to do with the recent financial crisis that the Dodd Frank bill was supposed to address? 2. Do you think that they realized that the banks would react by raising fees elsewhere? Should they have realized it? 3. Is the regulation a good idea or bad idea?...
View Full Document
- Spring '11
- Credit card, Cheque, WSJ, debit card transactions