Banks have failed to understand the true nature of their complex cost structures, and have seriously underpriced their products and services to reflect the value they provide, geographic differences in relative price sensitivity, and the specific risk of commercial borrowers. Banks need to systematically reprice their product lines to reflect value and risk.

Moreover, banks attempting to adjust the inadequate pricing of the past must now battle both consumer advocate groups and antitrust regulators, who will make repricing in the future even more difficult.

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