More on new bank overdraft fee changes

September 23, 2009 | By Jim Kim

Bank of America says that its new, more consumer-friendly overdraft policies were not driven by the threat of new legislation.

"We made the decision that we had to help customers now and help those most stretched by the economy," the president of the bank's consumer and small-business banking operations was quoted in the New York Times. "They found themselves getting hit by too many fees, and they said, 'Help us out.'"

Not too many people will really believe him. Overdraft fees had exploded as a issue, and lawmakers and the Fed were moving toward regulatory solutions. It was wise to pre-empt this. We'll likely see other banks follow the lead of Bank of America and JPMorgan Chase. One issue here is how much revenue these banks will leave on the table. Overdraft and other fees had become an important source of revenue at a tough time.

For more:
- here's the article