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Will Customers Pay For New Bank Regs?

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Big banks shouldn’t have to raise fees on customers to meet new international rules, say consumer advocates, but they may do it anyway.

The Federal Reserve is likely to require U.S. banks to live up to requirements laid out by global regulators in Basel, Switzerland that would force them to raise more cash to limit exposure to value lost by their riskier assets. Because raising capital costs more money for a bank than bringing in new deposits, banks will have to raise fees for customers or lower the interest rates they pay on savings accounts, says Keith Legget, a senior economist for the American Bankers Association. Consumers could end up paying more interest on loans, too, Legget says. “The new, higher capital requirements will cause less credit to be available. As you restrict the supply of capital, this will exert upward pressure on interest rates,” he says.

But consumer advocates say that it will be tough to pin any changes in fees or interest rates directly on these new rules. “Fees have been going up for 15 years anyway,” says Greg McBride, a senior financial analyst for Bankrate.com. The new rules might be one more reason to increase fees, but fees have been steadily marching up because interest rates have been volatile for several years and banks are looking for another, more stable source of income, McBride says.

Similarly, if banks need to hold on to more capital, they might be slower to make new loans, and might restrict their lending to borrowers with high credit scores — but that’s also already happening, McBride says. “It’s just a continuation of the trends that are already in force,” he says.

The banks have never really needed an excuse to raise fees, says Linda Sherry, spokeswoman for Consumer Action. “Every time the wind blows a certain way, banks raise fees,” she says. “The dire predictions the industry likes to make, take them with a grain of salt.” Kathleen Day, spokeswoman for the Center for Responsible Lending, agrees. “Banks’ knee-jerk response to common-sense rules always is to say they will raise costs for consumers. The opposite is true,” she says. “Making sure banks are financially strong and well run reduces costs long-run.”

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      The United States Small Business Administration (SBA) announced that it selected Icon Construction,Inc. of McKinney,TX as its Minority Small Business of the Year for the Dallas/Fort Worth District. | Virtual Strategy Magazine is an online publication devoted entirely to virtualization technologies.
      United States Small Business Administration to Honor Minority Owned Modular Construction Company with Prestigious Award | Virtual-Strategy Magazine
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      United States Small Business Administration to Honor Minority Owned Modular Construction Company with Prestigious Award
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      Saturday, May 5th 2012
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      The United States Small Business Administration (SBA) announced that it selected Icon Construction, Inc. of McKinney, TX as its Minority Small Business of the Year for the Dallas/Fort Worth District.
      McKinney, TX (PRWEB) May 05, 2012 The United States Small Business Administration (SBA) announced that it selected Icon Construction, Inc. of McKinney, TX as its Minority Small Business of the Year for the Dallas/Fort Worth District. The SBA bases its award on recognizing exemplary minority businesses and their accomplishments and best practices. Icon Construction President and CEO James B. Bell, III said, “I cannot express how honored and humbled I am to have the privilege of working with the dedicated people who make Icon what it is. This was earned through a team effort and everyone deserves to be proud.” Icon Construction will be officially recognized as Minority Small Business of the year at an awards luncheon in the coming weeks.
      The Small Business Administration was created by President Dwight D. Eisenhower in 1953 when he signed the Small Business Act. Its function is to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.” Since 2004, the SBA has provided counsel and guidance to Icon Construction as an 8(a), HUBZone, Veteran and Native American owned modular building manufacturer. During that time, Icon Construction, with the assistance of the SBA, has secured dozens of government contracts from agencies like USACE, DOI, NPS, BIA, DHS, Army, Navy, Air Force and Marines just to name a few. “As a former United States Marine, I understand the importance of delivering projects on time and at or under budget. I am proud that Icon Construction has been able to do just that, time and time again, for the government. But it would also not be entirely possible without the wonderful assistance from the folks at the SBA,” Bell said.
      Icon Construction, Inc. was initially formed in 1997. With just a handful of employees at the beginning, Icon Construction developed at a slow and steady pace. But beginning with its involvement with SBA in 2004 and in the years immediately following, Icon Construction began to experience rapid growth. This led to the construction of Icon’s own multi-million dollar, state-of-the-art modular manufacturing facility in Durant, OK. Since that time, Icon has grown to more than 50 employees and regularly realizes annual revenues in excess of $15,000,000. Icon Construction currently serves customers nationally from coast-to-coast, offering complete design/build and full turnkey services as a modular building manufacturer and general contractor. Bell added, “Icon Construction is immensely grateful to the SBA for its assistance and looks forward to providing the highest quality modular building facilities and top quality customer service for many years to come.”
      For the original version on PRWeb visit: prweb.com/releases/prweb2012/5/prweb9477618.htm
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