Banks make $38bn from overdraft fees

Geez, should have seen this coming. What's next? The banks will offer more loans to cover the overdrafts and make them palatable by stretching them out for longer terms but keeping their interest charges high. - MBC

http://www.ft.com/cms/s/0/43d18c68-851d-11de-9a64-00144feabdc0.html

"...US banks stand to collect a record $38.5bn in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s, according to research. The fees are nearly double those reported in 2000..."

"...The most cash-strapped customers are the hardest hit by such fees, with 90 per cent of overdraft revenues coming from 10 per cent of the 130m checking accounts in the US..."