BUSINESS
03/18/2010 05:12 am ET | Updated May 25, 2011

Felix Salmon Explains Benefits Of Move Your Money Campaign

Martha White has a very odd column about Arianna Huffington's attempted boycott of the big four banks. Her math is simple: the four banks have $209 billion between them in transaction deposits, and the average American bank account has $4,000 in it, which means that in order to reduce the deposit base by 5%, or $10.5 billion, a whopping 2.6 million Americans would need to go through the hassle of changing banks.

But White here is missing the point: bank profits don't go up with the size of your bank account. Indeed, it's the other way around: it's the poorest customers, racking up habitual overdraft charges and the like, which account for the lion's share of banks' fees and profits.

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