3 ms·
Which is likely to be passed on to consumers via increased costs; in an already unfavorable economic climate for lower end of the income gradient.
by kfrzcode 4y ago
Which is likely to be passed on to consumers via increased costs; in an already unfavorable economic climate for lower end of the income gradient.
- dyno12345 4y agothe fees are proportional to the size of the account and benefit banks and customers by eliminating the possibility of losses due to bank failures
- notch898a 4y agoIDK what banks you've used, but all the banks I've used the fee proportionality is regressive. I also don't agree that the most prudent and responsible banks bailing out disproportionately depositors at failed banks is beneficial for them or their depositors. It also creates a moral hazard for customers to chase banks with the highest yield risk profile knowing they'll be bailed out by the other actors.
- dyno12345 4y agomaybe other fees they tack on, but not the FDIC fee. people seeing a bank fail will worry that their own bank could fail, which could lead them to withdraw en masse which will cause their own banks to fail, and so forth. this scenario is tremendously bad for everyone.
- notch898a 4y agoThe bank doesn't have to pass fees down using the same algorithm with which they were assessed, and they usually don't. The small guy gets fucked with regressive fee structure. >people seeing a bank fail will worry that their own bank could fai I feel more confident in my bank as it is compared to my bank minus a "special assessment" to backstop depositors at irresponsible banks.
- dyno12345 4y agoif they charge you a random fee and call it an FDIC fee then they are committing fraud