Citigroup (NYSE:C) joins Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) in announcing they will begin assessing new fees in the coming months. While Bank of America says that they will begin charging a $5 monthly fee for using a debit card, Citigroup will charge for having a checking account unless customers maintain higher account balances. Higher bank fees are the new norm as banks (NYSE:KBE) suffer from reduced revenue due to new regulations as well as the sluggish economy.
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Some believe these higher fees will hit the banks’ bottom lines in the future. “When you become arrogant and start acting like a monopoly,” he said, “it will come back to haunt you,” says John Tschohl, a banking customer-service consultant of the Service Quality Institute to the Los Angeles Times.
Citibank’s stock (NYSE:C) is down 4.78% to $25.61 on the news. Shares are down 37.38% in the past 52 weeks. The stock has traded in a 52-week range between $23.19 and $51.50.