Wells Fargo responds to new regulatory era

The main narrative from banks as the Dodd-Frank regulatory era gets underway is that revenues will take a hit. Brian Moynihan (Brian Moynihan news), CEO of Bank of America, among others has been driving home that point to analysts. But the picture is clouded by the fact that we do not yet have a clear view of how well banks will be able to offset the lost revenue.

To the chagrin of some customers, the banks will find ways to raise fees. Wells Fargo (NYSE: WFC) is perhaps leading the way on this. It is already passing on costs by charging for checking accounts and raising interest rates on credit cards and loans, analyst Richard Bove tells Bloomberg. The bank ceased its free checking program last month by adding a $5 monthly fee for some customers.

Wells Fargo CEO John Stumpf is hardly bitter about the new reform law. He thinks many of the provisions were right on. "Too-big-to-fail has been dealt with," he said in the interview. "Regulators needed a way to understand risk at the top of the house and opine on that risk. They did it in a way that makes a lot of sense."

That said, the Durbin amendment rankles Stumpf and he's got issues with the mandated move to clearinghouses for derivatives trading. Stumpf and his PR team deserve credit for being forthcoming about all of this. This is a time of uncertainty, and transparency will be rewarded.

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