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National Retail Federation’s Mallory Duncan on whether debit fees will cause Bank of America customers to leave the bank.
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Ballots now somebody says the disturbance is the one is right on dollar don't get a senior vice president of The National Retail Federation.
Mallory -- view is the senator had it right on if you don't like what they're doing -- a lot of people don't like what they're doing just.
Take your money -- -- Senator Durbin got it exactly right look we live in eight.
Competitive market most of our markets we want to be transparent.
And competitive.
And so consumers can look out and see what's the best deal and if a bank is offering them a bum deal then they're perfectly free to take that money and look someplace else.
But don't you think there's a higher standard.
For senators of either party and when you encourage what could be a bank run another British you know North Fork situation -- their lining up outside buildings.
Then and an -- senators saying rock you know you don't want this bank take your money and run this -- -- agreed -- nevermind that the state.
In some people's -- was driven by what you did seven.
Are that -- here and there have been.
Did they I think too I all my senators.
To a slightly higher standard than me -- finance our anchors.
That's -- First first of all there's not going to be a run on Bank of America.
Bank of America did this to themselves bare the widening out of themselves but just -- once -- decided.
They're the ones who decided to impose this five dollar fee if they see their customers leaving.
Bet your bottom dollar they'll start rethinking whether that's a wise idea -- -- -- -- Second -- -- others follow suit because by the way in the airline industry they all followed suit.
And I don't hear you're organization and anyone else for that matter rally against the airlines and their -- -- and there.
There -- these and there are you gonna use the bathroom and are not our fees and -- -- I think it's very selective anger here.
No not at all the differences the airlines have operated in the competitive environment as retailers we -- all about honest open market competition.
The banks though have been socking it to retailers and consumers for years with hidden swipe fees so.
That's where the anger comes from.
And consumers now see that the banks say okay we can't get our hidden swipe fees we're gonna use that as an excuse to sock you with another -- for getting your own my.
Is -- -- -- now I Syria frustration with these I think everyone is in the fee business and I they were all after with the disease but here's what I think happens in the process.
That that we we we we -- our anger -- a certain character in this case the bags easy target.
But -- -- will go ahead and let stand the administration's plans worth thirty dollar transportation tax we're going to get into a second.
Another departure tax all these -- -- taxes and fees that's fine because apparently these are all driving -- businesses.
Supported by a government that seems to recognize the need to -- -- Yet when they completely revamp the financial system of the United States.
And then an institution.
That claims that -- higher bills to -- as a result.
Tax on a debit card.
Then they're -- -- Lucifer.
With debit.
-- Well first of all Bank of America put itself in the situation.
They're not doing this because of mr.
Durbin they're not doing this because of the debit had a you know I don't know they're doing this they're doing this because they've got billions of dollars of really sticky loans on their books and so they're looking a way to make that up.
And then we're -- end up doing edited -- and I don't know others that other banks have some problem loans as well because they knew they were.
They are trying to recover -- -- mismanagement.
On the backs of the deposit.
-- isn't already out there left Nigeria -- a -- -- wherever.
That when we started -- the AT&T'S.
There's going to be 25 cents I remember the moment during the first it -- it's -- vice.
Then fifties every time you went to -- one of these machines.
Maybe a dollar a dollar and -- -- -- my just a got a dollar and see what happens.
Now in some years it's five dollars so whatever -- start with -- Greece is others follow.
So if other banks like Wells Fargo on some of these others follows suit.
Is there going to be this similar.
Rage at the entire industry.
Are you got to stop this -- nonsense with one industry letting go for others waited.
Well let's there's two things here first of all.
Banks are all about fees we've seen that and we're seeing it right now but secondly.
An awful lot of those other banks are looking at the public reaction to Bank of America.
And they're probably asking themselves is this -- what is this the way we wanna go do we want to start.
Taxing not old enough to get there I -- up public outrage over the ATM fees and they said.
Fifty cents 75 cents a dollar you kidding me and here we are.
In some locales five dollars or more so maybe the -- probable now for some reason.
B it gets accepted in the mainstream.
Hope that doesn't happen but I see your point my bigger worry is this.
I think we're shifting blame him.
From the very folks who came up with financial reform that doesn't reform who said we moved away from too big to tell and we still very much of too big to fail.
Because I think -- Bank of America were to go.
Belly up we would certainly rest.
Whether it's wise or not so I think we're pointing fingers and usually a middle at the wrong party that -- Well you know the public bailed out these banks and this is a pretty fine way to repay the public.
Well you're about I don't know that -- I would never put develops workers and in the beginning where you.
This you know this is the that the banks are important.
And we will hold -- there bella.
I was in I was in favor of maintaining our banking system.
And you beat the expectation was that would we help them out they would return the favor to main street and yet.
There are maybe I -- -- AM it wouldn't go to China and ship jobs overseas.
This is not a slippery slope that is government rescuing of any institution financial auto manufacturer otherwise once you do -- good -- It comes back to kick in the -- And the public wants to be re paid for the good deeds they did for the banking industry can't outwardly that -- a little while -- -- -- that's gonna happen.
But -- -- all your points well taken -- thank you very much.
