Banks face uphill battle vs. possible fee limits

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Banks face uphill battle vs. possible fee limits
By Ian Swanson - 11/11/09 06:00 AM ET


Banks may suffer their second major defeat since the financial crisis began as lawmakers move legislation that drastically curbs fees charged to consumers who overdraw their account balance.

Bills in the House and Senate would overhaul a service that earned $38.5 billion for banks in the last year, according to industry sources who are pessimistic they can stop it. This comes after Congress passed new credit card reforms earlier this year.

“I think we’ve got an uphill climb on this issue because of the publicity,” said Steve Verdier, senior vice president of the Independent Community Bankers of America.

“It’s going to be hard to stop,” said another industry representative, who asked to speak on background to talk more candidly about the issue.

Hitting banks on overdraft fees is a perfect election-year issue in that it allows Congress to stand up for consumers while hitting the big banks many see as responsible for the financial crisis that sparked the worst recession in decades, industry sources said.

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http://thehill.com/homenews/house/67281-banks-face-uphill-battle-vs-fee-limits