The Dick Durbin tax
POSTED: Tuesday, October 4, 2011 - 6:52pm
UPDATED: Thursday, October 6, 2011 - 10:42am
It finally made headlines this morning. A United States senator calling for a run on a bank.
We're talking Bank of America here. That's the bank that has infuriated many of its customers.
The bank now says its going to charge some customers a $5 a months fee to use its debit card.
Cue the music for some political theater.
Is the sound checked and are the cameras ready to go?
Here, now comes pettifogging democratic Senator Dick Durbin saying that all BOA customers should take their money out of the bank and put their money somewhere else.
Man, that's so good. Political red meat.
Stick it to the man. Then, the truth gets in the way of a great rant.
According to Forbes, it turns out that there may be a method to Bank of America's madness. The bank claims that the move is in response to a pretty big anticipated loss in profit as a result of the so-called "Durbin Amendment." The Durbin Amendment is an add-on to the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by President Barack Obama on July 21, 2010.
The Act was meant to protect us from all of those banks that were too big to fail.
The Durbin Amendment, named after Sen. Dick Durbin (D-IL), was added to the bill.that was supposed to be pro-consumer.
But here's the kicker: the Amendment gave the Federal Reserve the power to regulate debit card interchange fees and other bits of banking administration. which they've done.
How's that working out for us?
This is what happens with politicians go where they don't need to be.
No, you can't let big business get crazy.
But Dick Durbin of all people raising hell about this is the biggest case of political hypocrisy I've seen in a.... day.
I'm sure there will be something as ludicrous Wednesday.
That's my point of view, what's yours?
You can email me at email@example.com