Moynihan Defends Bank of America Debit Card Fees

October 07 00:00 2011

New York, October 7 ( – Bank of America’s CEO Brian Moynihan has made a strong case defending the $5 monthly fee for customers using debit cards, announced by the bank. He said Wednesday night that he has “an inherent duty as a CEO of a publicly held company to get a return for my shareholders.”

Moynihan is making an all-out effort to save the nation’s largest bank that is staggering under a perfect storm of risk perpetuated by its disastrous purchase of Countrywide, increasing mortgage putback demands and tumbling revenues due to regulation curtailing bank fees.

Moynihan clarified that most of the customers of the bank who use multiple services will not be covered by this fee and that only “those customers that don’t have their total relationship with us” will have to pay it. Moreover, he said that the fee will not start until next year for new customers and for current customers it will only start halfway through next year.

Moynihan steered clear of questions regarding negative comments made by President Obama and Senator Dick Durbin but he said that the new fees were fully disclosed. He added that “What’s important is being clear to the customers, providing the great service we provide and making a profit that we can return to our shareholders.”