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Empire National Bank CEO Doug Manditch discusses why the government doesn’t need to help consumers, small banks can.
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Welcome back everyone was worried about copycats hiking debit card fees just -- Bank of America but you know what turns up the opposite is happening.
Small banks are actually cutting these fees to attract businesses.
My next guest says the Washington needs to stop talking about step in and because of free market is very stiffen up.
Doug -- that she's chairman and CEO of empire national bank He joins me now so we're seeing Doug this is really interesting news reports out.
That there's a number of banks that they we've got some information with the banks are they're basically saying you know what we're gonna do with the big guys are doing.
We're gonna cut fees were gonna these are the ones or any critic -- you see here BankAmerica Wells Fargo JP.
And region those are the ones hiking but the smaller regional players are -- to actually go in the opposite direction what do you make about -- Rock and first of all I don't and has anybody actually implemented these fees Citi did in some test areas I think but be a they just announced that they haven't gone.
So as the backlash gets louder and louder do you think they might step back just a little bit.
You know I think the whole problem is.
Creating it went to what it due to have you ever seen a big banks stepped back after their -- consumer backlash that's when they what they do.
With consumer back -- they do because they that there's just too much this just too much heat coming back from Washington on that stuff.
You know.
We'd like to think this is a free enterprise system but the financial services.
The industry is not free to do anything it wants anymore I mean the president even yesterday said.
That these fees are you know that they're at a -- control with the fees well.
Where's the free enterprise part of this I mean if if somebody doesn't like -- that banks charge in the free to go to another bank.
Yeah that's interesting Doug and you know the irony is is that the -- the swipe -- Was put into Dodd-Frank and Dodd-Frank was meant to stop the next financial collapse swipe -- have nothing to do with -- in the next financial collapse right correct not only that.
But it was to protect the cut consume up who's getting no benefit out of -- -- -- because the benefits going to the retail -- And you can bet the retail is not passing it on to the consumer.
It's 22 cents this whose -- -- so it's so that I think banks and the credit card companies have lost its.
Millions of billions and billions of dollars tens of billions of dollars in these -- So banks are gonna make it up some real banks have been casting too isn't it fair to say that -- let's make out Wall Street bailouts -- and they don't have to pass the step McCartney know.
I agree I think there's other ways of doing it and -- believe me I'm not a complete supporter of this industry yes they did not say many didn't not just an annoying it is not just an annoying -- debit card.
And then for whatever and then hit I guess who is it just -- transactions for purchases on -- car and then you have to pay sixty dollars a year earlier debit card well I think that you know.
If they do put in place actually put in place that probably you.
Ways around -- I didn't of the Mountain View balances amount of transactions whatever you do.
I wouldn't be surprised -- Bank of America pulled away from this and and really didn't.
Put in place interesting what do you think of represented Durbin who a base -- impact -- swipe fee hike.
Which has the banks saying you know what we're gonna pull back and recheck and -- slap Deborah Kerr -- What do you make of Ed Dick Durbin saying you know what.
If your Bank of America customer you know what run run away from the -- not a little reckless.
I mean you want another systemic.
Issue.
Because what happens -- bank of neat American has a run by the customs which is probably not gonna happen but -- in the United States senator and if there's been a.
A run because of know about congressman saying well -- Chuck Schumer and if you -- -- -- now indymac He said the same thing place at that summit indymac was in trouble right right.
But the point is He caused the -- so I don't think that Bank of America's gonna have a run because of what He said but it certainly that's a reckless statement.
To say on this floor of the senate.
That meant it's always good to do if you won the best banking CEOs that there really good to be concerned that --
