Unlimited Insurance for Non-interest Bearing Accounts; More Regs = More Fees?
Posted by Anthony Demangone
For those of you who read the Dodd-Frank Act closely, you'll remember that it gave the FDIC and NCUA the ability to offer unlimited insurance protection for non-interest bearing transaction accounts through 2012.  The FDIC is about to act on its new power, but NCUA has been silent as to its plans on what it will do.   We've urged NCUA to move quickly on the issue, but there's no official word yet.  Stay tuned.Â
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It seems that Chase is now charging different fees depending on the channel through which it delivers the service.  (NetBanker.) It seems they charge more for certain "in person" transactions now. This shouldn't shock anyone.  With losses to income due to the CARD Act, Regulation E, and other new regulatory burdens, many financial institutions are rethinking how they price products and services.  This is the latest example of what happens when regulation is placed over a free market system.  When it costs more for a business to deliver products and services, they either accept less income, cut costs, raise prices or do a combination of the last two.  People tend to forget that banks and credit unions are businesses. The free market always adapts.