Brian Moynihan, the chief executive of Bank of America, said this week that the bank’s new debit card fee was the best solution to balance the bank’s duty to both its investors and its customers.
At a recent event in Washington, D.C., Moynihan described the bank’s predicament in the wake of the Dodd-Frank financial reform law that will cost the bank billions of dollars, Forbes.com reports. One provision in the law that caps the amount banks can charge retailers for debit card swipes has already moved Bank of America to implement a $5 monthly fee for customers who use their debit cards.
President Obama reacted to the bank’s decision by asserting that “banks do not have some inherent right just to get a certain amount of profit,” according to Forbes.com.
Moynihan refuted Obama’s attack and said that the clearly stated fee was the best option for the bank in order to continue its responsibility of providing a return to its investors as well as meeting the needs of its customers.
Moynihan also expressed his confidence that Bank of America will not be affected by the ongoing sovereign debt crisis in Europe. Many financial experts are concerned that if Greece defaults, contagious economic damage could spread across the Atlantic.
Moynihan said Bank of America has firmer capital footing than in 2008 when it required significant government bailout money, Forbes.com reports.