Business

Geithner Warns Banks: We Will ‘Prevail’ Over You

Treasury Secretary Tim Geithner joined with his colleagues on Tuesday and said that the Obama administration “will prevail” in the battle over banking reforms, reports CNN.

“There are no surprises, nothing strange about the fact that banks are resisting it — are pushing back,” Geithner told CNN’s Erin Burnett. “They are trying to weaken those reforms.”

Last year, lawmakers approved a law that put a cap on how much a bank is allowed to charge on debit card transactions. Some claim that this cap led Bank of America to recently switch to a $5 monthly charge.

Geithner reiterated his position against the banks.

“We are going to push back harder,” he said in the CNN Money report. “And in the end, we are going to prevail because what we are doing is a reasonable, sensible thing.”

The so-called Durbin Amendment, part of a larger Wall Street reform law, limits banks to charging 21 cents for each debit card transaction, reports CNN. Previously the banks would charge an average of 44 cents, mostly to retailers.

Watch the CNN video summary:

Earlier this week, Durbin made news by saying that consumers should switch banks to fight back against the charges.

“If Bank of America wants to nail their customers with a monthly fee, I want their customers to make the conscious decision to go elsewhere where they are better treated,” Durbin said.

Because the 21 cent cap is expected to lose the banking industry $5 billion a year, other banks are considering moves similar to Bank of America’s.

Last month, Wells Fargo said it will test a $3 monthly fee in Georgia, New Mexico, Nevada, Oregon and Washington for customers who use their debit card for purchases, reports the Associated Press.

Likewise, JPMorgan Chase announced it be charging customers in northern Wisconsin a $3 debit card fee.

(H/T: Business Insider)

Comments (154)

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  • V-MAN MACE
    Posted on October 5, 2011 at 11:12am

    GEITHNER IS WITH THE BANKS!!!

    He supported the bailouts!

    GEITHNER IS A FEDERAL RESERVE SABOTEUR!

    GEITHNER IS A TREASONOUS TRAITOR!!

    ABOLISH THE FEDERAL RESERVE!

    Report Post » V-MAN MACE  
    • kennyg933
      Posted on October 5, 2011 at 11:46am

      Absolutely. This llittle person is the NWO’s bitch, as is Obama, and, alas, as are we all. I think it was Dan Ackroyd as Louis Winthorpe III, dressed in a filithy Santa suit in Trading Places who said, when he realized he was screwed by the Billy Ray Valentine, doing the bidding of Randolph and Mortimer Duke, “Thanks alot.”

       
    • carbonyes
      Posted on October 5, 2011 at 12:26pm

      Taking Geitner’ s cue, you might want to switch banks on the following:

      (1). When banks are charging you $37.50 for an overdraft fee. Banks are making billions on overdraft fees.
      (2). Definitely switch banks when they are paying you .05% (one twentieth of one percent). That dear people to the bank is called free money. To their depositor that is called bank robbery, but the robbery is being perpetrated by the bank upon the depositor. This has occurred on accounts at a bank in Warren, Ohio with deposits in excess of $30,000.00. How would you appreciate annual interest of $17.00 upon a deposit of $34,000.00? Would you say it is time to beat your feet to the bank and withdraw your money? I certainly would!
      Just sayin, but sayin with emphasis!
      The banks are getting away with “highway robbery”, but actually the robbery, once again, is occurring within the bank by the bankers themselves.
      Their response, “It’s the Federal Reserve.” Oh, the devil made them do it! really? Who does the banker represent, the Federal Reserve or their their depositor(customer)? I know, stupid question, but it sometimes it hits home a little harder when you see it in writing. The bank represents the Federal Reserve, which is a privately owned entity, and also represents the government, which is controlled by the Federal Reserve. Lovely, isn’t it! The bank is a lackey for both the Federal Reserve and the government – you know our lovely Congressmen who carry water for the Federal Reserve. A

      Report Post »  
    • Detroit paperboy
      Posted on October 5, 2011 at 12:30pm

      Local , state , and federal governments are sucking the life blood out of this nation…
      Our founders warned us about this. They had seen it all before !!!!
      OF BY AND FOR THE GOVERNMENT

      Report Post »  
    • jakartaman
      Posted on October 5, 2011 at 1:26pm

      Can you say stupid unintended consequences
      Every time tis administration sticks its foolish head into corporate america – the Public gets screwed.
      Please get your socialist BS out of my life and get off the backs of job creators
      Your stupidity is only exceeded by your arrogance

      Report Post »  
    • mils
      Posted on October 5, 2011 at 2:35pm

      THIS ADMINISTRATION IS TRYING TO COLLAPSE OUR NATION..
      We are in trouble, and most of us do not realize it.

      Report Post »  
    • ForTheRepublic
      Posted on October 5, 2011 at 3:58pm

      if your keyboard wasn’t broken.
      I might have actually taken the time to read that

      Report Post » ForTheRepublic  
    • Stuck_in_CA
      Posted on October 5, 2011 at 4:10pm

      As I read the many posts here, it is clear the number of us who “get it,” is growing. But so is the frustration toward D.C., because NO ONE there with the authority to correct these things, will do anything about it.
      This president should be removed from office. He and his pals have broken so many laws, it’s staggering.
      Darrell Issa is the ONE guy who’s trying to hold them accountable. But the leadership in his party doesn’t seem to g.a.s.

      Report Post » Stuck_in_CA  
    • Down2TheC
      Posted on October 5, 2011 at 4:11pm

      Because price controls always work out well Timmy. Look up FDR and learn what not to do.

      Report Post »  
    • MIBUGNU2
      Posted on October 5, 2011 at 9:32pm

      TurboTim is on the loose again..Cover you azz !!

      Report Post » MIBUGNU2  
    • blue suede
      Posted on October 5, 2011 at 11:46pm

      I agree. Plus, Geithner is guilty of tax fraud and gets away with it with the blessing of this corrupt administration. Why should we believe anything this tax cheat has to say, especially about the banks, who’s altar- of- gold he and this herd of donky’s butts worships at every day.

      Report Post »  
    • Ruler4You
      Posted on October 6, 2011 at 1:24am

      Unfortunately, Timmy is right. The government makes the rules. It forces ALL other ‘entities’ to genuflect to its demands. Or else.

      I’m not saying its right. I’m just saying that previously, it was the LACK of this kind of attitude that separated America from tyrannical socialist governments the world over. No more.

      Report Post » Ruler4You  
    • WeeDontNeedNoSteeeenkinBadges
      Posted on October 6, 2011 at 5:44am

      DON’T LET THESE BASTARDS GET AWAY SCOTT-FREE!
      Arrest. Trial. Execution. For treason. All of them.

      Report Post » WeeDontNeedNoSteeeenkinBadges  
    • Fuul Aluuf
      Posted on October 6, 2011 at 12:37pm

      @carbonyes, I think you have the wrong definition of highway robbery. Robbery is a crime because the person being robbed does not agree to the transaction. Putting your money in a bank that doesn’t pay a decent interest rate is called being stupid (that is, you are stupid, not the bank)

      Report Post »  
  • lketchum
    Posted on October 5, 2011 at 11:06am

    Vote, people! Vote and get your friends and family to vote these criminal Communist monsters from office.

    Vote like your life depends upon it! It quite literally does. 2012 is our last chance to avoid catastrophy!!!

    Report Post » lketchum  
    • drattastic
      Posted on October 5, 2011 at 11:32am

      People who have never been engaged in politics are now awake and they oppose this president. We will overwhelm the socialist in 2012. There will be a lot of straight Republican tickets being pulled in the voting booths and with any luck that means a Republican President ,a bigger majority in the House and hopefully a filibuster proof super majority in the Senate .Then the work begins.

      Report Post » drattastic  
    • CatB
      Posted on October 5, 2011 at 12:40pm

      @LKETCHUM

      TEA!

      c

      Report Post »  
    • GUT_CHECK
      Posted on October 5, 2011 at 1:29pm

      that is correct
      Ron Paul 2012

      Report Post »  
    • desertspeaks
      Posted on October 5, 2011 at 4:04pm

      sorry but the system works just a little differently than you think.. the people don’t really elect a president/vice pres. The electoral college does, and to be honest, even though states hold elections.. It’s only a feel good measure and can be a slight of hand. The electors can vote for whomever they choose,.. Having said that, they usually go with the voters but they can do whatever they like.
      Now before some know it all tries to say I am misinformed, here’s the link to educate yourself about the matter. http://www.archives.gov/federal-register/electoral-college/faq.html#meaningful

      Report Post » desertspeaks  
    • olddocotis
      Posted on October 5, 2011 at 8:23pm

      I fear Nov 2012 may be too late. I fear the day is coming soon, and Ive been saying it for 2 years, there won’t be elections next year. They are creating a crisis. They will drop the hammer, and declare martial law.

      Report Post »  
    • desertdogtom
      Posted on October 5, 2011 at 8:46pm

      The banks and Gov are in bed. I went to the bank a couple years ago for a loan. I asked the loan agent if I could get a loan held by the bank. She said “NO”. I asked why not? She told me the banks don’t have the money. They write the loans and sell them to Fannie and Freddy. If we had to carry the loan that would tie up the money and we couldn’t loan as much money. That‘s when I realized something wasn’t right. The problem is friends, banks are dependant on the fiat printing now. Stop printing and they can’t make money. We cry they don’t pay intrest, well they don’t charge intrest either!! 4% for a house loan? The System is broken. The Fed needs to get out of the banking industry. I have no confidence that this will be fixed anytime soon. Even better, when it does get fixed there will probably be riots.

      Report Post »  
    • blue suede
      Posted on October 5, 2011 at 11:56pm

      We would be doing the right thing to vote this prez out of office in 2012, but don’t put anything past this corrupt administration, they with their atheist/leftist/marxist professors in higher ed, would be willing to insite students to continue with mass insurrection in the streets, then the Dembocrats would call off the presidential election in 2012 due to massive civil unrest. Thereby, another 4 or more years for Obama. Pray.

      Report Post »  
    • kf4omc
      Posted on October 6, 2011 at 12:42am

      @DESERTSPEAKS Not true. 27 states have laws that lock in what the elector can vote for. In these states the electors are not alowed to vote any other way than what the state election came out to be. Plus each party picks who the electors are. so if the election goes the dems way in the state, the group that the party head of that state picked will be the electors. same for Repubs. Each Party vets their electors so they know their loyalty. So it is 99.999% sure that all elector will vote their partys way.
      .

      Report Post » kf4omc  
  • atrain
    Posted on October 5, 2011 at 11:00am

    Nobody has a “right” for free anything. If you don’t like the fees then do business elsewhere. That my friends is the beauty of capitalism.

    Report Post »  
    • Av8r1969
      Posted on October 5, 2011 at 11:02am

      Hooah!

      Report Post »  
    • JCoolman
      Posted on October 5, 2011 at 12:47pm

      Here’s a better idea. Be responsible and there won’t be any fees. I have never been charged a fee in all the years I have been with the my big bank unless I was not responsible (I was mad, but it was my fault, not the bank’s). And quit expecting to get a percentage on your money that you voluntarily put in the bank. Nothing in life is free. In fact the best things in life are earned. Getting a percentage on money put into a bank account is not earning money.

      Report Post »  
    • chfields62
      Posted on October 5, 2011 at 1:46pm

      It amazes me when I hear people whine about $35 fee for spending money YOU DON’T HAVE in the bank. Whether you have it their or not, the bank pays and then it charges you. The idea is for you NOT TO SPEND MORE THAN YOU HAVE!!!! I have NEVER paid a fee that wasn’t due to my error. If you are responsible with your spending you will NEVER be charged. Quit blaming the banks for your own irresponsibilty.

      Report Post »  
  • dottygoat
    Posted on October 5, 2011 at 10:53am

    Vow these people out of office.

    Report Post »  
  • doodad
    Posted on October 5, 2011 at 10:51am

    I think bank fees are bullshi*, but it’s a free market, kind of, so since my bank is now starting to charge them, I will get my tens of dollars out and find one that doesn’t charge me to access my own g.d money. That said, we can all blame Barney ***, Chris Dodd and Schong Durbin for the banks screwing us instead of businesses.

    All of this is leading up to the Occupy Wall Street turds to start shrieking for a National Bank that will be the worst bank in history. People are just stupid and are too reactionary…especially socialistards.

    Report Post »  
    • simply one voice
      Posted on October 5, 2011 at 11:00am

      Mat I please use this word : socialistards? So fitting!

      Report Post » simply one voice  
    • Blackhawk1
      Posted on October 5, 2011 at 11:36am

      What we are seeing now is the Democrats gift to all of us. The Financial Wrecking Ball Reform Bill the Democrats passed and Obama signed now limits the fees banks can charge businesses when the debit cards are used in their stores. So they’ll be passing their new costs onto consumers by charging for use of debit cards and trying to steer consumers into using credit cards, which are more profitable – and which BTW promote less responsible spending and more borrowing. Just another one of the Liberals unintended consequences that they never see coming but everyone with half a brain knows will happen.

      Report Post » Blackhawk1  
    • Polwatcher
      Posted on October 5, 2011 at 1:50pm

      If someone else wants to use a bank that charges large fees, then they should be allowed to do so. Personally I only use banks that are customer friendly. With all the banks and credit unions around to compete, what is the big fuss?

      Report Post »  
    • Therightsofbilly
      Posted on October 5, 2011 at 4:44pm

      @Blackhawk

      Yes, unintended consequences are indeed the gifts we recieve from democrats.

      Just like all the slaughtered birds from their “green” windmills.

      Just tooooo funny.

      Report Post » Therightsofbilly  
  • TH30PH1LUS
    Posted on October 5, 2011 at 10:49am

    The government assumes you don’t have the two brain cells needed to make decisions for yourself about financial choices. BIG BROTHER will clear the path for you and guide you into eternal Utopia.

    Consequences of a govt capable of being your parent, your doctor, your kid’s nanny, your mortgage holder, your dietician, etc etc etc?

    Report Post » TH30PH1LUS  
  • Meyvn
    Posted on October 5, 2011 at 10:48am

    I won’t switch banks necessarily. I’ll just quit using cards.

    Report Post » Meyvn  
    • Bald1
      Posted on October 5, 2011 at 9:20pm

      That is exactly what I will do! Really want to put a knot in their knickers…start using checks again. Purchase your checks from an outside source, a lot cheaper (CostCo, BJ’s, Staples, Office Depot, Delux Checks, etc). Processing “checks” still costs the bank a lot more then using a debit/check card.

      To all those upset with the “overdraft” fees….. do not overdraft! That plain and simple.

      Report Post »  
  • svedka
    Posted on October 5, 2011 at 10:47am

    Cash, while it exists, is still the best way to do business.

    Report Post » svedka  
  • TRONINTHEMORNING
    Posted on October 5, 2011 at 10:47am

    Little Timmy, you are a sad little tax cheat and you need to vacate. Soon, pal; real soon.

    Report Post »  
  • simply one voice
    Posted on October 5, 2011 at 10:46am

    Today’s Headlines Read: Stocks Head Higher on Service Sector Data

    So…

    Buy Stock on the NYSE

    Buy Stock on the NYSE

    Buy Stock on the NYSE

    It’s not even close to October 29, 1929 – Right? Just re-capitalize the banks!

    Obama and his 10 Million Dollar family of vacationers on the US taxpayers dole doesn’t mean a thing. Just soak the rich, steal from the middle-class and your poor disappear into the mainstream.

    I wish this day to thank all the absolute Traitors in the Congress and Senate for the GREAT job!

    Report Post » simply one voice  
  • wildwood
    Posted on October 5, 2011 at 10:46am

    Look at that face, the bulling amoung this administration is growing every day!!!!!
    When will the bureaucrats in washington learn, that the smart people are out in the real world, they out smart them every day!!
    Every thing the democrats have done has just made a bad situation, worse!!!!
    But how many will admit it???None, lay the blame on some one else!!!!
    Durbin, Sodd, frank and many more democrats need to be voted out, been there tooooooooooooo long!!!!!! done nothing !!!!

    Report Post »  
    • TurboCat
      Posted on October 6, 2011 at 6:43am

      Dodd, Frank, Schumer, etc. are way too arrogant for their own good, and for our own good, they should finally be shown the door, as in ‘dont’t let the door yer azzez as ye leave!’.

      Report Post »  
  • Penn
    Posted on October 5, 2011 at 10:43am

    Banks versus the Government?? These two have been in bed together since 1913. Back in the 1930′s the Nazi blackshirts (SS) fought aganist the stormtrooper (SA) brownshirts. Both wanted power and the SS wound up destroying the SA. The SS won because their allegiance was to their leader, while the SA supported the movement.

    The Road to Fascism is paved with Government Interventions.

    Report Post »  
  • FaithfulFriend
    Posted on October 5, 2011 at 10:43am

    If we as consumers don’t have $3 or $5 a month for a fee like this, even though the businesses we use these cards at have always paid a transaction fee, then we probably shouldn’t be using a debit card in the first place.

    That’s not an endorsement of gov regulation which creates the need for the fee. No way. It’s just basic personal finance common sense. If the funds aren‘t there for a fee like this then why make it easy to spend money we can’t afford to spend in the first place.

    Report Post » FaithfulFriend  
    • TurboCat
      Posted on October 6, 2011 at 6:47am

      I pay that amount each month for GBTV and get way more value from that than from debit card use anyway!

      Report Post »  
  • peter469
    Posted on October 5, 2011 at 10:39am

    While I do believe the bank were going a bit overboard with the fees they charge seemingly on everything, they are private businesses and have to earn a return for their stockholders. If the government artificially restrains their ability to earn revenue in one area they WILL make it up by increasing charges in other areas. In the end it flows down to the banking customer with lower interest paid, higher fees on things like debit cards and checking accounts. Increased interest rates and fees on mortgages, etc. This Administration and the liberals/socialists in Congress do NOT understand how business works since they have never worked a day in their lives or run a business. All the Democrats have to be unelected and a great many of the old guard Republicans.

    Report Post » peter469  
    • Jaycen
      Posted on October 5, 2011 at 11:11am

      More class warfare, and worse, this is political warfare. Two more banks already have plans to charge a monthly fee.

      Apparently, Bank of America isn’t playing ball enough with the Administration, so they’re going to make an example of them.

      Report Post » Jaycen  
  • welovetheUSA
    Posted on October 5, 2011 at 10:38am

    Another Obama worm…..you need to be behind bars Mister.

    Report Post » welovetheUSA  
  • drago
    Posted on October 5, 2011 at 10:37am

    This idiot needs to be “pushed” off a cliff………

    Report Post »  
  • Buster Hyman
    Posted on October 5, 2011 at 10:34am

    Zero, nadda, zilch understanding or respect for free market economics. The entire thing is driven by a perverse desire for power. These are extremely dangerous people.

    Report Post »  
    • Snowleopard {gallery of cat folks}
      Posted on October 5, 2011 at 10:39am

      Indeed, next move will be the nationalization of all banks by the Fed’s.

      Report Post » Snowleopard {gallery of cat folks}  
    • MidWestMom
      Posted on October 5, 2011 at 10:53am

      @ snow
      We’ve been expecting that to happen for quite some time. Stopped keeping our money in the bank two years ago.

      Report Post »  
    • blaze7c
      Posted on October 5, 2011 at 1:52pm

      If you think the free market still exists, then you are sadly mistaken. Corporate welfare makes these big banks. Then, they say it is too big, and we must regulate it. The government has created these monsters and feeds them regularly by way of the Fed and government bailouts. The banks say that they are losing money, but what happened to all of the money the politicians and the government have given them. These regulations are strangling and do not benefit anyone except the banks and big government. There is no such thing as free markets in the USA.

      Report Post »  
  • cloudsofwar
    Posted on October 5, 2011 at 10:34am

    little timmy wants to nationalize the banks. oh wait they already are. charge me to use my debit card? looks like i will be writing checks instead because i get free chcking. i can see the banks point but they already take a fee from the seller why charge the buyer too. More Money. it’s younger women, faster horses, older wiskey, More Money. it’s our system and i love it. down with socialism.

    Report Post »  
  • Vechorik
    Posted on October 5, 2011 at 10:34am

    Banks — Ron Paul 1988 telling about our bank/money problems we’re having TODAY.
    He warned and no one listened. Is anyone listening today?

    http://www.youtube.com/watch?v=nffNGg-33JM

    Report Post »  
  • Anonymous T. Irrelevant
    Posted on October 5, 2011 at 10:33am

    More government intervention, causing the price of doing business to go up.

    Report Post » Anonymous T. Irrelevant  
  • thegreatcarnac
    Posted on October 5, 2011 at 10:32am

    I am not happy with these new fees these banks want to charge but the fact is the reason for them are the regulations and restrictions the obama regime added to these mega-banks to begin with. No one likes a bank when he owes them money. To have a modern capitalist society we must have a banking system that works smoothly. I am not saying that we give banks ‘carte-blanche’ but these communist in our White House would love to crush the banking system. Why? Because they are communist and under communism…only the communist dole out the money. They hate a free, independent banking system.

    Report Post »  
  • kickagrandma
    Posted on October 5, 2011 at 10:31am

    What the h*** does that mean? I’d like to prevail over timgeithner. Time for that boy to be in prison, and I don’t mean a fancy doo-dah luxury spa either.

    Report Post »  
  • EqualJustice
    Posted on October 5, 2011 at 10:30am

    Ever since Obama and his buds took over, this country has been on a DOWNHILL SLIDE! That should give these radicals a CLUE about why we say, “WE WANT OUR COUNTRY BACK!” (and it has NOTHING to do with race) They KNOW it.

    Report Post » EqualJustice  
  • don young
    Posted on October 5, 2011 at 10:29am

    Keep pushing the banks with more regs and the banks will shaft us in return.

    Report Post »  
  • Mandors
    Posted on October 5, 2011 at 10:26am

    Typical liberal politics. They (Dobbs and Frank) cause the crisis. Geithner made millions off it. Then Obama and Congress push “reforms” that have nothing to do with the collapse.

    Oh, and does anyone know why “Geithner” doesn’t show up as a misspelled word when you type it?

    Report Post » Mandors  
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