New Bank Rules Mean Higher Fees For Customers: Wells Fargo Chief

Bloomberg:

Wells Fargo & Co. Chief Executive Officer John Stumpf said customers, not just the bank, will bear the financial burden for U.S. regulations that cover services ranging from home loans to credit cards.

Read the whole story: Bloomberg

Comments

[PassingBy]

01:03 AM on 08/01/2010

Flash, Consumers Say! Well Fargo to have Fewer Customers.

[Avanti2]

02:16 PM on 07/31/2010

Well of course. Take away former profit centers and what remains will have to pick up the slack. Duh...

[SwingingFromCenter]

01:14 PM on 07/31/2010

Yes, yes, let's all act shocked. The government imposes new rules which will cost the banks money and make it so it costs more for them to conduct business...and it's shocking, SHOCKING I say, that they would pass those costs on to their customers.

Never saw that coming. Nope, not at all.

All of you "tax them this" and "tax them that!" crowds never realize that you're asking for taxes and fees upon yourselves.

[PassingBy]

01:06 AM on 08/01/2010

Maybe they shouldn't be a bank, they are not very good at it.

[halfpricefaustian]

12:06 PM on 07/31/2010

I've noticed a concerted effort lately to convince everyone that the financial reform legislation will cause everyone to pay more for banking services. Be afraid! You will pay more! Blame the government!

Nonsense. If you read this carefully you will realize that most banks and credit unions will see no impact from the financial reform bill. You will not lose your free checking (which isn't really free, it's funded by returns the bank makes on the minimum balance most of them require). Most banks don't write and sell CDOs and hedges, so no impact there, and banks with under 10 billion in assets are mostly exempt from any effects. As so many others have said, move your accounts to a local bank or credit union. They offer some pretty good deals.

This is all about the big players, who were so deeply involved in our recent financial system failure, throwing a hissy fit and acting like innocent victims.

[bgofca]

02:23 AM on 07/31/2010

i used to bank with washington mutual; they had free checking and i had free checking just for having my paycheck automatically deposited; never had any trouble with them. then chase took over. Recently i was notified that they'd only have overdraft protection for a fee. Note that I'd never had an overdraft, for them to do this. Previously this was always free. I checked and citibank is doing the same thing. they used to let people with an established account, overdraft protection without fees except for the overdraft fee. they did honor the check so you didn't get returned check charges. As i said, i haven't needed this service, but it was nice to have it available in case i made a bad math mistake in my checking account. I've also gotten warnings about extra fees and expenses with their charge card as well. I have been paying off every month, and have a good credit rating (over 800) and they still increased my interest rate, I canceled my charge card with them. opened up a credit union account and closed my checking and savings account. I plan to avoid using banks for as much as i can.

[realitytrumpsbull]

09:29 PM on 07/30/2010

It was a long, tough slog getting through that article, but I finally made it, with my pre-existing question intact: Where do you sign up to become credit-ineligible, kind of like do-not-call, but in this example, do-not-lend? With a zero credit score, there's no ambiguity about what it's going to take for you to buy a house, or a car, or anything else. Pay cash, or do without. That's what the dru g dealers do, isn't it, buy homes and cars for cash? What a mistake it was with all that work ethic stuff, when all you had to do to succeed, was sell dope.

[gogogadget]

12:29 AM on 07/30/2010

Amazing how business stupid the American people are. Anytime more regulations and expenses are put on businesses,those costs are passed on to the consumer. Ignorance is bliss I guess. Not defending the actions but it is no surprise at all. Everytime government gets involved,costs go up and quality goes down. America will find all this out soon enough.

[realitytrumpsbull]

09:15 PM on 07/30/2010

Horse feathers. You use a service, you should pay for it. Banks often touted 'free checking', free this, free that, free something else. Nothing's free. If you have any questions about that, try calling up your local utility, and requesting free electricity. The person on the other end of the line will probably laugh until they fall out of their chairs, or just hang up on you, in disgust. A favorite author of mine, Larry Niven, science fiction writer, had an acronym(it was either him, or Jerry Pournelle, I forget which, but just don't sue me, here): TANSTAAFL. There Ain't No Such Thing As A Free Lunch. Take your ATM, f'rinstance. Someone has to take care of the machine, and it runs on electricity. Oh, and you have to load the thing with money, every so often. Is it so unreasonable to ask that regular ATM customers put .25-.50 towards operations? When you go to a different bank than the one you normally patronize, typically you'll be paying a fee upwards of $1.50. Ok, so, what if you made it national industry standard that ALL ATM users paid a minimal fee, per usage, to directly cover operations like that? Similarly, charge a fee at the banking counter. You come in, it's going to cost you a buck, because the financial institution has to make payroll somehow. Unrealistic expectations, competition, pushy ads full of nice promises, have made banking into an industry desperate to try to produce impossible results.

[Jefferson78]

11:13 PM on 07/29/2010

That's your poorly written "Financial reform" legislation at work. Thanks Pelosi.

[marylandtravelinman]

11:32 PM on 07/29/2010

Thank Scott Brown. He is one of your guys right!

[CATNIP1]

11:44 PM on 07/29/2010

You should be thanking Well Fargo if you agree with them.

[lvdragonlady]

10:48 PM on 07/29/2010

OK America, now is a great time to really show the 'big boys' what you think of them. Close your accounts and move them to a community bank or credit union. Don't even give them a chance to start charging you because of their (((()))) ups.

[Tom95134]

10:44 PM on 07/29/2010

Maybe they can take it out of those few billions of dollars they have in profits every quarter.

[sueinmn]

06:26 PM on 07/29/2010

We removed our house savings account from WF recently and I will move my modest savings account next! WF this is for you...........


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[sheila]

05:31 PM on 07/30/2010

OMG, i have never seen that cartoon before - awesome! plus, awesome that you are joining millions of us and MOVING YOUR MONEY. Let's starve the beast!

[keepyourheaddown*]

05:59 PM on 07/29/2010

E ff u wells fargo!!!!!

[BBackSoon]

05:25 PM on 07/29/2010

Because big banks are used to massive profits, and moderate ones will not do!

[FoonTheElder]

05:01 PM on 07/29/2010

Yeah, everytime a fly goes by his window that means higher fees for customers.

[prdamericanmom]

04:45 PM on 07/29/2010

I find it funny that the Wells Fargo guy had to make the veiled threat. Aren't his customers already drowning in unnecessary fees and charges? Please.

I will echo the other posters and say this:
Move your money elsewhere. In the current economic climate, you can't afford NOT to.