Wells CEO criticizes limits on debit-card fees
Wells Fargo & Co. Chief Executive Officer John Stumpf said limits on fees charged to merchants for debit card transactions “make no sense” and distort free-market economics.
“What’s next?” Stumpf, 57, wrote in his annual letter to shareholders of the San Francisco bank. “Will the government require car dealers to sell a new vehicle for $5,000 or grocers a gallon of milk for 50 cents?”
…”Banks should be fairly compensated for the value that debit cards create for merchants and their customers by reducing fraud risk and the cost of carrying cash or handling checks,” Stumpf wrote. “An 80 percent cut in this fee wouldn’t even enable us to cover the cost of providing the service.”
Mr. Stumpf is a vile human being. Demanding to gouge people in the worst economy – that he helped cause – is pure greed. Oh and speaking to his argument that the fees don’t cover the cost, given that the average fee was over 1%, is he saying that a $5,000 debit-card transaction actually did cost the bank more than $50? If so, Wells need to consider getting out of the banking industry.
And this from the man who made $19 million last year.
If revolution comes to the US, it will be because of the obscene distribution of wealth. We now live in a country where the top 400 wealthiest individuals have more wealth than the ‘bottom’ 50% of Americans combined. And yet, the tax breaks for the wealthy continue.
And Mr. Stumpf has made it clear that he thinks that the bottom 50% have too much.