Investors don't require a government credit guarantee for other asset classes, have never requested it for mortgage securities, and have never explicitly gotten it.
I was at a summit with 300 other community bankers when we were startled by chants of "Make Banks Pay!" Occupy Wall Street and related groups see no solutions coming out of Washington they are attacking bankers as public enemy #1.
Right now, every customer who uses a debit card could be using a credit card instead. And each one could also share in the increased interchange income.
Regulators' consent orders let mortgage servicers select firms to review their actions. Allowing the banks to choose their own judge, jury, and jailer presents almost untenable conflicts of interest.
If the industry works seriously with the reasonable critics of its fee practices - the ones who stress disclosure - it can safely ignore the rabble-rousers.
For the vast majority of Americans, the role of the bank is to be there when the customer wants it to be there. Like the water company. Like the electric company.
Most of the data security focus is on protecting credit card and account numbers, so criminals have appropriately shifted their strategy to take advantage of low-hanging fruit.
Instead of fees, banks need to focus more on the customer experience. Things like being open seven days a week and staying open an extra hour each day are what will build loyalty and retain customers.
When the profits and losses of the debit card unit suffer as regulation clips revenues, the banks increase fees, discouraging debit card usage. Any pretense to customer focus goes out the window.
