Summary Box: US Bancorp 2Q profit tops expectations; says financial overhaul is ‘manageable’
By APWednesday, July 21, 2010
Summary Box: US Bancorp’s 2Q profit climbs
CHECK THAT BALANCE: U.S. Bancorp collected $51 million less in overdraft fees and other add-on charges, partly because of new federal limits, and because it lowered its fees to get some customers to agree that paying the fee would be better than having their payment or ATM withdrawal declined.
THE $35 CUP OF COFFEE: U.S. Bank dropped overdraft fees if the overage is less than $10. U.S. Bancorp CEO Richard K. Davis says this prevents the $35 cup of coffee — the cost of a coffee plus an overdraft fee.
WHAT’S AT STAKE: The new financial overhaul law will govern how much banks can charge for processing debit card transactions — a $500 million business for U.S. Bancorp. But the bank said it expects the changes to be “manageable.”
