The Future of Banking in a Troubled Economy

Customers use the ATM's at a Bank of America branch Thursday, Aug. 18, 2005 in New York.  - (AP Photo/Mark Lennihan)

Customers use the ATM's at a Bank of America branch Thursday, Aug. 18, 2005 in New York.

(AP Photo/Mark Lennihan)

The Future of Banking in a Troubled Economy

As revenues and profits from lending fall, the banking industry turns to layoffs and new transaction fees. How a weak economy and new regulations are affecting banks – and consumers.

During the financial crisis of 2008, the U.S. government funneled trillions of dollars to failing banks. The massive bailout was aimed at boosting lending and fueling an economic recovery. But this plan hasn’t panned out, with the nation’s unemployment stuck at 9% and GDP a sluggish 1.3%. Facing the worst revenue growth since 1938, America’s largest banks have announced they will cut sixty thousand jobs this year. Many of these banks plan to charge customers higher fees for services to make up for the lost revenue. Diane and her guests discuss the future of the banking industry in a troubled economy.

Guests

Michael Greenberger

professor, University of Maryland Carey School of Law; former senior regulator, Commodities Futures Trading Commission.

Kathryn Dick

managing director, Promontory Financial Group

Terry Jorde

senior executive vice president and chief of staff, Independent Community Bankers of America (ICBA)

Gretchen Morgenson

Pulitzer Prize-winning business reporter and columnist for The New York Times; co-author of the book, “Reckless Endangerment”

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