Diane Katz, is a research fellow in regulatory policy at The Heritage Foundation.She joined The Matt Friedeman Show to discuss Congress's recent move to legislate bank fees. Below are the "CliffsNotes" of her interview.
Regions has revoked its debit card fee. Why is that such big deal?
Banks are in business, and they're in business to make money for their shareholders. One of their ideas was to invoke a monthly fee on debit cards.
The problem is that while consumers are upset, they're upset at the wrong people. They're looking at the banks as if they're the bad guys, when in fact it's what Congress did that caused this to occur.
The banks are saying that because of consumer backlash, they're revoking this policy . We would be so lucky if Congress were that quick to pay attention to us.What are the effects of this legislation?
Banks cannot stay in business if they're going to give up billions and billions of dollars.
As consumers, we're going to see new restrictions and higher costs.How do we fight back?
Ultimately, we have to fight back against the root cause, which is the government regulation.
The recession was not caused by debit cards. It's just been an excuse to impose controls on banking.
That's the real problem.
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