JPMorgan (NYSE:JPM) Attacks Fed's Debit-Fee Rules

Calling the proposal by the Federal Reserve to put a cap on debit-card transaction fees a "terrible mistake," JPMorgan (NYSE:JPM) said the consequences would be for “a significant amount of the population” to abandon the banking system.

Charlie Scharf, chief executive officer of retail financial services at JPMorgan, said, “We continue to believe that this was a terrible mistake. It’s not a terrible mistake for us. It’s a terrible mistake for the small banks.”

Clueless regulators continue to attempt to micro-manage the free market - or what's left of it - and as always, will reap the unintended consequences always inherent in government interference.

The reason this is a disastrous proposal is debit card fees are used to subsidize other free services like checking. If the fees are capped, there will have to be charges initiated to customers in other areas. What sense does that make? It's nuts, to say the least.

One way or the other services must be paid for. Take away one avenue and another will prop up. That's how business works. And if an attempt to cut off all avenues is instituted by the government and its quasi-government arm the Federal Reserve is made, then we'll see the banking industry get crushed again.

End the Fed.