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Geithner criticizes BofA

Timothy GeithnerTreasury Secretary Timothy Geithner added himself to the list of public officials who are criticizing Bank of America for its new debit card fee.

“We are going to push back [against banks] harder…and in the end, we are going to prevail,” Geithner said, ABA.com reports.

Bank of America recently announced it would start charging customers a $5 monthly fee to cover the cost of operating a debit card. The bank blames the move on the Durbin Amendment, which it said dramatically cuts into its revenue.

Earlier this week, President Obama criticized Bank of America for its response to the Durbin Amendment and told customers to fight back.

“You can stop it because if you say to the banks, 'You don't have some inherent right just to – you know, get a certain amount of profit,'” Obama said, ABA.com reports. “If your customers – are being mistreated. That you have to treat them fairly and transparently.”

Frank Keating, the president and CEO of the American Bankers Association, responded to critics with a longstanding argument made throughout the Durbin Amendment debate.

“As a direct result of the Durbin Amendment, consumers have started paying for financial services they previously enjoyed free of charge,” Keating said, according to ABA.com. “Unfortunately, this proves that whenever government tries to control pricing of a product or service, consumers lose.”
 

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