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WASHINGTON, DC — Today, as the Senate Committee on Banking, Housing, and Urban Affairs conducts its Annual Oversight of Wall Street Firms, CEO’s from the country’s largest megabanks—including JPMorgan Chase, Wells Fargo, Bank of America—should expect sharp questioning regarding their use of excessive and hidden junk fees, including credit card late fees. These three banks stand out from the others when it comes to the practice of excessive and hidden fees, and they are among the most belligerent critics of the Consumer Financial Protection Bureau’s (CFPB) proposed rule to lower costs for everyday Americans by capping credit card late fees at $8, down from as much as $41.  

A new review of recent corporate earnings and legal settlements from government watchdog Accountable.US found that the dubious claims from these CEOs that they can’t maintain profits without high-cost junk fees do not match reality. 

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Big banks’ own massive profit reports show they do not need to nickel and dime everyday families with excessive and hidden fees. Yet megabank CEOs still charge as much as $41 on a single late fee to squeeze maximum profits out of consumers struggling to stay above water. The Biden administration’s work to lower costs for Americans by capping these fees is badly needed because megabanks have no intention of self-regulating their greedy behavior. Meanwhile, many Republicans in Congress make excuses for junk fees from the same banks with so much extra profit that they’re able to reward a small group of wealthy investors with billions in new handouts.”

Accountable.US’ Liz Zelnick

REPORT HIGHLIGHTS: 

  • As of September 2023, JPMorgan has raked in over $3.4 billion from junk fees, adding to the staggering $5.2 billion they gained from such fees in 2022. Meanwhile, in 2022, JPMorgan reported what it called a “somewhat surprisingly” “strong year,” after it saw a fifth straight year of record revenue alongside $37.7 billion in profits while spending over $16.6 billion to reward its shareholders through a combination of share buybacks and cash dividends. Chairman and CEO Jamie Dimon pocketed $34.8 million in total compensation. 
  • As of September 2023, Wells Fargo raked in over $3 billion in junk fees, after seeing over $4.7 billion in revenue from these fees in 2022. Meanwhile, Wells Fargo used $6 billion of its over $13.2 billion in profit to reward its shareholders with stock buybacks and cash dividends in 2022. The megabank also saw its net income climb by a staggering 49% during the first nine months of 2023 to over $15.6 billion. And as of September 30, 2023, Wells Fargo had a remaining $29 billion remaining on its share buyback program. 
  • So far this year, Bank of America has made over $2.6 billion from ‘junk fees,’ even after pocketing $4.2 billion from these fees in 2022. In 2022, BoFA saw $27.5 billion in profit and spent a total of $13.6 billion on its shareholders through a combination of stock buybacks and cash dividends. In the first nine months of 2023, BoFA has rewarded its shareholders with $10.6 billion as its net income has climbed 14% to $23.4 billion YoY. 

 

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