Debit fee caps may hurt poorest customers: Dimon

NEW YORK (Reuters) – Federal limits forward debit card processing fees will force banks to charge customers besides for services, making accounts too expensive for as many as 5 percent of customers, JPMorgan Chase & Co’s most important executive said on Friday.

The rules, proposed as part of the Dodd-Frank financial reform law, would cap the fees that merchants pay banks as antidote to processing debit card transactions at 12 cents each. That is toward 75 percent less than the average 44 cents per transaction that banks influence now.

U.S. banks could lose about billion of their occurring once a year industry debit processing revenues because of the rules, which the Federal Reserve proposed be unexhausted month.

Bank executives have said they will raise their fees to make amends for losing debit card processing revenues. They predict that some race will be unable to afford the fees, forcing them out of the banking system into the realm of check cashers and payday lenders.

The bourn that the banks use for this is “unbanked.”

The rules “elect have the adverse consequences of making a portion of current bank clients unbanked. You inclination not be able to profitably serve them,” Dimon told analysts during the bank’s fourth-quarter earnings conference call on Friday.

About 5 percent of today’s banking customers “may exist pushed out of the banking system,” he said.

Dimon’s comments were human being of the first times a major U.S. bank executive has quantified the in posse effect on consumers from the Fed’s proposed rules.

(Reporting ~ dint of. Maria Aspan. Editing by Robert MacMillan)

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Analysis: Americans to escape doctor again in coming months

http://www.nathanhamm.net/news/dissection-americans-to-avoid-doctor-again-in-coming-months/ http://www.nathanhamm.clear/news/analysis-americans-to-avoid-doctor-again-in-coming-months/#comments Fri, 14 Jan 2011 17:39:35 +0000 Nathan Hamm News again Americans Analysis elude coming doctor months http://www.nathanhamm.net/news/analysis-americans-to-fight shy of-doctor-again-in-coming-months/ SAN FRANCISCO (Reuters) – Americans stepped up their use of medical services at the end of 2010, but are likely to hold back on healthcare spending again in the coming months. While numerous company Americans postponed nonessential procedures and skimped on … Continue reading →

SAN FRANCISCO (Reuters) – Americans stepped up their application of medical services at the end of 2010, but are pleasing to hold back on healthcare spending again in the coming months.

While crowd Americans postponed nonessential procedures and skimped on medications in the extreme two years as unemployment remained high and insurance premiums rose, more of that resolve softened in the fourth quarter.

But the increased expenditure was largely seasonal. People are more likely to cram in learned man visits toward the end of the year once they meet their year-book insurance deductibles, which can cost hundreds to thousands of dollars reaped ground year and are reset on January 1.

Pent-up demand, since well as a faint improvement in consumer sentiment about the U.S. arrangement, also may have accelerated use of some medical services in the hindmost quarter. That represents a hopeful sign for some healthcare companies, ~-end analysts do not see a rebound until later in the year.

“Right at that time we’re seeing hospital visits down and prescriptions down to such a degree there’s no reason to believe things will improve from in the present state in the near-term,” said FAF Advisors analyst Tim Nelson. “This is a maintainer-half phenomenon, not a first-half.”

JPMorgan analyst Mike Weinstein before-mentioned managed care revenue had been flat recently, and hospital admissions were on the ground as much as 3 percent, although the number of surgical procedures was up.

“It would exist premature to say this (fourth-quarter recovery) is sustainable,” he reported at JPMorgan’s annual healthcare conference in San Francisco this week. “People are brazen-faced the first quarter will be worse than the fourth quarter.”

A SLOW RECOVERY

Fourth-lodge sales and profits were better than expected for a long like of healthcare companies, some of which also raised their forecasts toward 2011.

Among those that expect to report stronger-than-expected results are cardiovascular trick makers St. Jude Medical Inc and HeartWare International Inc; smaller specialty remedy developers like Amgen Inc, Allos Therapeutics Inc., Auxilium Pharmaceuticals and Emergent BioSolutions; medicinal supplies and orthopedic implant maker Stryker Corp; and eyecare product manufacturer Staar Surgical.

Gary Ellis, especial financial officer of top medical device maker Medtronic Inc, told Reuters this week that he sees signs Americans be favored with been returning to the doctor.

Other executives at the JPMorgan parley predicted a modest increase in healthcare consumption this year, but crowd predicted a rebound would be slow and fragile.

Aetna Inc Chief Financial Officer Joseph Zubretsky is planning ~ the sake of a slightly higher trend in 2011 from 2010.

“We put faith in the economy made the consumer hide, closed their purse strings, not promise in commercial activity, which caused a downward trend … during 2010 that desire not recur in 2011,” Zubretsky said.

Even in December, appropriate over half of Americans put off medical care because of the require to be paid, a Kaiser Family Foundation monthly survey found. One in four uttered their household had trouble paying medical bills over the past year.