JP Morgan and These Big Banks Back Down on This Revenue Stream

JP Morgan Chase (NYSE:JPM) joined other banks that had dropped plans to impose monthly levies on debit cards. This follows the huge customer and political outcry faced by Bank of America (NYSE:BAC) after it proposed to charge a monthly $5 to its debit card holders. JP Morgan’s (NYSE:JPM) decision was apparently based on eight months of consumer testing.

Banks have been forced to consider these charges to compensate for lost revenues due to recent regulatory changes particularly that relating to the amount chargeable by banks to merchants for accepting debit cards. According to industry estimates, banks stand to lose $ 6 billion annually due to these changes.

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Customers have already started to move their banking to smaller institutions, with Bethpage Federal Credit Union signing up more than 1500 customers since Bank of America’s plans became known.

Though other banks who have given these charges the go-by are not linking it to the Bank of America (NYSE:BAC) fiasco, Stephen Troutner, Citigroup’s head of consumer and small business banking said, “Our customers said that would be a massive source of irritation for them. Any time you hear that kind of emphatic feedback from customers, you’ve got to listen to them.”

Here’s how big banks are trading on the news:

  • JPMorgan Chase & Co. (NYSE:JPM): The shares recently traded at $36.73, up $0.059 or 0.16%,. Its market capitalization is $141.76 billion. They have traded in a 52-week range of $27.85 to $48.36. Volume today was 14,957,832 shares versus a 3-month average volume of 49,914,900 shares. The company’s trailing P/E is 7.83, while trailing earnings are $4.69 per share. The company pays a dividend of $1.00 per share for a dividend yield of 3.00%. About the company: JPMorgan Chase & Co. provides global financial services and retail banking. The Company provides services such as investment banking, treasury and securities services, asset management, private banking, card member services, commercial banking, and home finance. JP Morgan Chase serves business enterprises, institutions, and individuals.
  • Citigroup, Inc. (NYSE:C): The shares recently traded at $33.91, up $0.139, or 0.41%,. Its market capitalization is $99.14 billion. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 22,783,078 shares versus a 3-month average volume of 58,203,200 shares. The company’s trailing P/E is 9.04, while trailing earnings are $3.75 per share. The company pays a dividend of $0.04 per share for a dividend yield of 0.10%. About the company: Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. The Company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services.
  • Bank of America Corporation (NYSE:BAC): The shares recently traded at $7.36, up $0.31, or 4.4%,. Its market capitalization is $74.59 billion. They have traded in a 52-week range of $5.13 to $15.31. Volume today was 126,015,070 shares versus a 3-month average volume of 304,506,000 shares. The company’s trailing earnings are $-0.31 per share. The company pays a dividend of $0.04 per share for a dividend yield of 0.60%. About the company: Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.
  • Wells Fargo & Company (NYSE:WFC): The shares recently traded at $27.24, up $0.17, or 0.63%,. Its market capitalization is $143.61 billion. They have traded in a 52-week range of $22.58 to $34.25. Volume today was 16,510,578 shares versus a 3-month average volume of 46,864,400 shares. The company’s trailing P/E is 10.09, while trailing earnings are $2.70 per share. The company pays a dividend of $0.48 per share for a dividend yield of 1.90%. About the company: Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage, leasing, credit cards, and consumer finance. The Company operates through physical stores, the Internet and other distribution channels across North America and elsewhere internationally.

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