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Thursday, September 29, 2011


computer schools in Chicago

I am really not surprised at all that the banks are about to charge fees directly to consumers in order to reimburse the loss they will have further to the new Federal rule. Isn't that the way things are always going ?


To R.Quinn: I'm not blaming the banks in this instance. If anything, I'm blaming the Fed. Or maybe I'm blaming no one. I was just noting that when you put an economic squeeze on in one place (in this case, when the Fed limited what the banks could charge retailers), it's hardly a surprise that the squeezed actor will try, if possible, to make up the difference elsewhere (in this case, reflected by the banks charging consumers for using debit cards). I wondering whether the Fed thought through the consequences of its regulatory action.

R Quinn

Why not look at the root cause, it's not the banks who are passing on costs but the retailers who backed this change and are getting a windfall. Do you want to cut profits of the institutions we are keeping afloat in a financial crisis?


John P.

As you note, this is hardly surprising, which makes me wonder why something can't be done about companies that continually shift costs like these to the consumer. Would it have been even theoretically possible for the Fed to have prohibited the companies from passing along the cost of their reduced profits to the consumer?

I often wonder the same thing in the context of litigation that results in large punitive damage awards, and whether the companies simply increase their prices after such award, effectively causing all of us to pay the cost of their malfeasance.

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