Regulatory Scrutiny

In the midst of economic turmoil, many financial institutions in the United States are facing regulatory scrutiny from the impact of consumer behavior shifts. The recent changes to banking regulation are in direct response to the financial crisis we are facing in the United States. These regulations, however, are requiring institutions to operate on restricted income, thus limiting the funds available to cover operating expenses. Since banks and credit unions rely heavily on fee income in order to survive, reduction in fees in one area will cause institutions to seek income in another area. Check out this recent article about a lawsuit filed against Wells Fargo Bank for their fee structure for overdrawn accounts.