Tags: Wells | Fargo | Stumpf | Customers | Pay | Financial | Reform

Wells Fargo’s Stumpf: Customers Will Pay Dearly for Financial Reform

By    |   Thursday, 29 Jul 2010 04:31 PM

Critics of the new financial reform law have said that additional costs it imposes on banks will simply be passed on to customers.

A growing number of bank executives are now confirming that view, with Wells Fargo CEO John Stumpf the latest.

Customers will have to share in the new costs the bill created for a wide range of services, he told Bloomberg in an interview.

“I can’t guarantee that we won’t pass on some of those costs,” Stumpf said.

“We’ll try to tighten our belt and absorb some of the costs of compliance, but some costs may change, and customers might pay for their financial services in new ways.”

Indeed, Wells Fargo already has acted by slapping fees on checking accounts and increasing interest rates for loans and credit cards, notes Dick Bove, bank analyst for Rochdale Securities.

“This bank does not intend to sit there and get nailed,” he told Bloomberg. “Wells Fargo has moved well ahead of the crowd, and everyone will follow.”

At JPMorgan Chase, CEO Jamie Dimon says the new law may force higher fees and credit card rates.

Another area of the law that has drawn strong criticism is a provision allowing the SEC to avoid releasing information about its regulatory work to the public.

“It allows the SEC to block the public’s access to virtually all SEC records,” Gary Aguirre, a former SEC staff attorney told FoxBusiness.com.

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Critics of the new financial reform law have said that additional costs it imposes on banks will simply be passed on to customers. A growing number of bank executives are now confirming that view, with Wells Fargo CEO John Stumpf the latest. Customers will have to share...
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2010-31-29
Thursday, 29 Jul 2010 04:31 PM
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