For me, this is a sign of major changes to come in the banking industry. It is also a sign of major pressures being placed on banks across the country by federal regulators. Outlining an industry wide $6.6 billion projected loss, Johnson cites new federal limits which have been placed on "swipe" fees associated with debit card usage. Banks are facing a need to be creative in the way they generate their revenues. So who are the victims? You and I as average consumers. We will now have to pay similar fees which, on the surface, may seem minuscule on a monthly basis. The catch is that a simple $5 fee each month means billion dollar gains for large institutions such as Bank of America.
I view this as being a direct outgrowth from onerous regulations which have been placed upon financial institutions. Federal regulations have caused a severe shortage of capital for small business, and a lack of revenues for financial institutions. The question is what lies ahead economically for financial institutions? Also, will life become even more difficult for the average consumer as regulations mount on the shoulders of financial institutions?