BankThink

Consumers are understandably angry that their debit cards and checking accounts will be subject to new fees. No one likes price increases, especially when they appear suddenly and without apparent justification. However, the current backlash against the nation's large banks is misdirected, and the rationale for these new fees is generally misunderstood.

When banks attempt to mark up the transaction involving a dollar, the fee for the service is stark. It stands out in a manner that makes it both obvious and occasionally controversial.

Receiving Wide Coverage ...Volcker Rule Unveiled: …but it's hardly final. Regulators' official proposal requested public comments on hundreds of questions, sowing concern in some corners that financial industry lobbying could eventually result in a watered-down final rule. Indeed, the Journal's coverage includes a sidebar describing the behind-the-scenes wrangling between industry representatives and regulators thus far. "When it comes to face time, no one can top Wall Street," the story says. Critics also say the proposal "gives banks too much leeway to interpret the rule as they see fit and could permit exactly the type of activities the rule is supposed to prevent," according to a separate Journal article. However, the Times' "DealBook" says the proposal "contained a few unfriendly surprises for the banks," including a ban on paying bonuses to bank employees to "encourage or reward proprietary risk-taking." One of the authors of the Volcker section of Dodd-Frank, now an industry lawyer, is quoted as calling the proposed compensation rule a "huge" change. Pardon us for being dim, but if the Volcker rule is supposed to get banks out of proprietary trading, should anyone be surprised that it would forbid banks to give employees incentives to do such trading? Wall Street Journal, New York Times, Washington Post.

A common theme running through several news items should give bankers pause on their current tactics for arriving at a new regulatory world.

Banks are already in the thrall of a new business model even worse than the utility one: the industry is frozen solid in fear both of relentless credit risk and remorseless regulatory requirements.

Regions Financial Corp. has narrowed the bidders for its Morgan Keegan securities unit down to two, The Financial Times reported late Monday. The Blackstone Group L.P. and the Carlyle Group have joined forces, and Thomas H. Lee Partners is the other, the paper reported.

Receiving Wide Coverage ...Regulators Defend Basel III: The Bank for International Settlements issued a report attempting to debunk bankers' arguments that requiring big global institutions to hold extra capital would squelch economic growth. Wall Street Journal, Financial Times.

There is no doubt that credit unions will see some type of uptick in membership as the result of negative press surrounding the bank fees being handed out like punishments in the wake of the Durbin Amendment's rules, but unless that 80/20 rule (which is often closer to 90/10) has been suspended, a lot of those new members aren't going to be the type who put the "cooperate" in the co-op.

Credit unions have experienced an explosion in severe cyber attacks this year. Here are some tips to help your CU avoid becoming victimized.

Bank employees were among the 111 people charged — 86 of which are in custody today — in an alleged international identity theft ring based in Queens, N.Y.