greedcanbgood

5 U.S. Banks with High Levels of Service Charge Income

Here is the REAL issue, "If the Obama administration’s proposal to set up a consumer financial protection agency becomes successful, then high service fees, overdraft fees, etc. imposed by banks on customers may be targeted."

In one fell swoop, the Obama administration can effectively cut a large percentage of the revenue for retail banks - a potentially crippling blow. The argument isn't whether or not overdraft fees are too much or bank fees in general too prolific but rather whether or not the government should limit the revenue opportunities for a privately held organization.

This is VERY dangerous legislation and has a number of potential, highly negative consequences. If this passes and you have retail banks in your portfolio, you'd better keep a VERY close eye on your portfolio!

Impact of Obama Plan on Prospect of Big-Bank Breakups

Jasper - look at the spreads on debt issuances by these institutions. This is a good indicator of how the market preceives risk. PNC, BB&T and USB (USB especially) consistently fund debt at a MUCH lower rate than peers. My issue with the chart is that it's sorted by how many "notches" a company's rating was lowered - but one needs to also consider from where it was lowered.

Impact of Obama Plan on Prospect of Big-Bank Breakups

Bad table, not so useful....or at least sorted VERY poorly. Banks like USB, BB&T and PNC STILL are mainting VERY high ratings and generally fund much cheaper thier their respective pier groups. This indicates significantly less risk in these institutions when compared to the rest of the industry. A rising tide raises all ships but the chart/article fail to make note of the converse.