Citigroup Joins Bank of America’s Quest for More Banking Fees
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.
Super Hot Feature: These Wall Street Firms are About to Start Firing People Like Crazy!
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.