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Category: JPMorgan Chase

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Chase opts out of debit-card fee

DebitswipeSeattle2009APElaineThompson

This post has been corrected. See below for details.

Another bank seems to have figured out what Bank of America Corp. has found out: charging for use of debit cards could chase customers away.

JPMorgan Chase & Co., which for eight months has been dinging its Georgia and northern Wisconsin customers $3 a month for using debit cards, said Friday it has decided to end the test next month and won't impose the fee anywhere.

There was no official announcement, but a person who had been briefed on the matter said the bank's customers preferred a program it calls Chase Total Checking.

That's a package that charges checking customers $12 a month ($10 monthly in California, Oregon and Washington) but waives the fee if they have at least $500 direct-deposited each month, or keep at least $1,500 in the account, or have a total of $5,000 in linked Chase accounts.

A host of critics including President Obama have attacked BofA's plan to start charging account holders $5 a month if they use their debit cards to make purchases (ATM transactions are free).

Citibank has said its customers really hate the idea of debit card fees. It has raised its fee for a basic checking account but has said it won't impose a debit fee.

US Bank also has said it has no plans for such a fee, although Wells Fargo has begun conducting its own tests of a $3 monthly charge and some regional banks like SunTrust, a big presence in the Southeast, have started charging a fee similar to BofA's.

Bank customers across the country have expressed "outrage" over the BofA fee, according to Norma Garcia, who heads up a financial-services program for Consumers Union, the advocacy arm of Consumer Reports.

"It's time for Bank of America to listen to its customers who are saying loud and clear: drop the fee or we'll drop you," Garcia said in a statement. "All banks that are considering debit card fees should ditch those plans."

BofA Chief Executive Brian T. Moynihan said this week that he’s “incensed” by public criticism of his company and is pushing back by reminding local leaders of its contributions to their economies.

[For the Record, 1:44 p.m. Oct. 28: An earlier version of this post indicated that Citibank had tested debit card fees. Citibank did not impose a debit card fee on a test basis, but it surveyed its customers, who opposed the idea of fees.]

RELATED:

Citibank imposes higher checking charges -- but no debit card fee

Debit cards poised to get much costlier

Survey: Debit cards users may switch banks over new fees     

--E. Scott Reckard

Photo credit:  Elaine Thompson / Associated Press

Tenants sublet Fox Interactive Media offices at Playa Vista

Bluffs at Playa Vista

Three tenants have agreed to move into 57,000 square feet of never-occupied office space in the Bluffs at Playa Vista as subtenants of Fox Interactive Media.

CyberCoders, a recruiting and job search firm, contracted for a nearly 10-year sublease and moved in last month. Discus Dental will begin a more than four-year sublease in October, and Rovi –- a digital entertainment technology firm –- will move into the building at the end of 2011 to begin a five-year sublease, brokerage Cushman & Wakefield said.

Landlord JP Morgan Asset Management acquired the two‐building office project formerly known as Horizon at Playa Vista in February and renamed it the Bluffs at Playa Vista. Fox agreed to rent the entire complex before it was completed in 2009 but only moved into one of its nine floors.

The buildings are at the intersection of Bluff Creek Drive and Campus Center Drive, south of Marina del Rey.

ALSO:

Commercial real estate in weak recovery, Realtors say 

-- Roger Vincent

Photo: The Bluffs at Playa Vista office complex. Credit: Lincoln Property Co. 

How big is your bank? Chase, Bank of America duel for No. 1 slot

DimonbustourAug2011GaryFriedman 
SNL Financial has compiled a list of the 50 biggest U.S. banks at the end of the second quarter, which shows Bank of America Corp. barely edging out JPMorgan Chase & Co. as the No. 1 U.S. financial institution as measured by assets.

Assets are the loans, securities and other holdings that are supposed to make money for banks -- a category that unfortunately for the banks and the economy has included an awful lot of toxic money-losers these past few years.

As of June 30, BofA had a little more than $2.25 trillion in assets and Chase just under $2.25 trillion, SNL Financial said in a news release Monday. Citigroup Inc. was third with $1.96 trillion. Wells Fargo & Co., the only California-based company near the top, was in fourth with $1.26 trillion.

Chase led in deposits, however, with $1.05 trillion to BofA's $1.04 trillion.

Other California banks on the list included UnionBanCal Corp., a subsidiary of Japan's Mitsubushi UFJ Financial Group Inc., in 22nd place with $80.1 billion in assets; and BancWest Corp., owned by France's BNP Paribas, in 24th place with $74.3 billion in assets. Like Wells, the parents of Union Bank and Bank of the West are based in San Francisco.

Southern California institutions, well down in not-too-big-to-fail territory, include No. 38 OneWest Bank (Pasadena, $26.4 billion in assets); No. 43 City National Corp. (Los Angeles, $22.5 billion in assets); and No. 45 East West Bancorp (Pasadena, $21.9 billion in assets).

Northern California's First Republic Bank (No. 42, $23.8 billion in assets) and Silicon Valley Bank parent SVB Financial Group (No. 50, $19.4 billion in assets) popped up on the list as well.

RELATED

Chase exec tours with pep rally to dispel financial fears

Bank chiefs seek to reassure investors

Federal Reserve aided all types of California banks during financial crisis

--E. Scott Reckard

Photo: JPMorgan Chase Chairman Jamie Dimon, right, during recent West Coast bus tour, presides over a bank that is No. 1 in deposits and No. 2 in assets. Credit: Los Angeles Times / Gary Friedman

 

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