In the wake of the Durbin Amendment, large regional and nationwide commercial banks began to take initial steps toward rolling out debit card user fees for many--if not most--checking account holders.

The likes of SunTrust and Regions banks went ahead and imposed the fees. Wells Fargo and JPMorgan Chase started "pilot programs" in various states, which most saw as a prelude to nationwide rollout. But the stuff didn't hit the fan until Bank of America pulled the trigger on such a fee nationwide. The rest is history.

Now, as a sad coda, the Justice Department is taking a look into the industry's move to impose this fee, and trying to determine whether there was any illegal collusion or price-fixing at play. The investigation seems to be prompted in part by a Rep. Peter Welch of Vermont, who penned a letter to the attorney general asking for the probe.

My sense is that it will be difficult to prove a conspiracy of any sort. Just about everyone expected fees on consumer accounts to materialize quickly once the new swipe fees kicked in. Banks were basically saying as much, decrying the end of a free checking era at every turn. Just about any fee increase will be rolled out by more than one player, as there are only so many fee opportunities and the banks' analysts know them all. It would be interesting if the probe turned up any evidence of signaling, any subtle means by which banks tipped their hands for the benefit of others. We'll just have to wait and see. 

For more:
- here's the article from the LA Times

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