Spin Doctor Joe Schmoe

The fee free-for-all at Canada’s banks

 Why Joe Oliver’s no-fee banking announcement was pure political theatre

"Put simply, the Conservatives muscled banks to offer a service that some banks already offer. If any further evidence was needed that this was pure political theatre, Oliver made sure to time the announcement amidst a week of blockbuster bank earnings. (Really, is there any other kind?) Over the span of a few days, Toronto-Dominion Bank, Royal Bank of Canada and Sco...tiabank each posted quarterly profits of between $1.8 and $2.2 billion, with more banks to report in the following days.

While the new rules target those with the lowest incomes and least assets, it was already relatively easy for that group to switch to a bank offering no-fee accounts. Instead, the new rules will most likely benefit wealthier clients with entrenched banking relationships—for instance, those customers with a mortgage, car loan, credit card, investment account and chequing account all at a single institution—who, either by choice or sheer laziness, have opted not to shop around. It’s certainly not a class of bank customer deserving of government intervention and protection. Now, courtesy of the Harper government, those bank customers may get a chance to switch to new low-cost accounts for $4 a month, rather than the $15 or $20 they might otherwise pay. But who’s fooling who? The bank will make up the difference with extra fees elsewhere."

http://www.macleans.ca/economy/money-economy/the-fee-free-for-all-at-canadas-banks-2/