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Durbin To Chase: You Make Enough Money

We’d like to stand up and applaud U.S. Sen. Dick Durbin (D-Ill.) for saying to JPMorgan Chase what many bank customers have been saying:

Senator tells JPMorgan CEO to stop threatening customersShut up.

Earlier this week, Durbin sent JPMorgan CEO Jamie Dimon a letter that included these gems:

“There is no need for you to threaten your customers with higher fees when you and your bank are already making money hand-over-fist.”

“Middle-class American families are struggling to get by in a tough economy — an economy that went south because of the banking industry’s unregulated excesses.”

He also cited a Reuters report that Dimon’s own compensation jumped “nearly 1,500 percent to $20.8 million in 2010.”

Durbin’s letter went public just before JPMorgan Chase & Co. announced record first-quarter earnings.

The five-page letter also quotes Dimon’s words to his shareholders, calling planned new banking regulations “price fixing at its worst” and “downright idiotic.”

Those regulations, set to go into effect this summer, would cap debit card interchange fees under the so-called Durbin Amendment.

Retailers pay interchange — or swipe — fees to credit card companies every time you use your credit or debit card. The Federal Reserve has suggested fees be capped at 12 cents per transaction; today they average 44 cents.

Dimon — and the bank lobbying industry — are working overtime to stop interchange fee rate caps and have made plans to cut rewards programs and restrict debit card purchases.

Bravo to Durbin for saying exactly what needs to be said: You make enough already.

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Comments (2)
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2 Existing Comments
  1. JoeyTribCO said:
    on April 14th at 12:10 pm

    Now the real message to chase would be to have people defect from Chase to other banks.

  2. Lightrider said:
    on April 16th at 10:52 am