Inside Biden administration plan to save Americans $3.5 billion a year

TheAvenue’s J.D. Durkin brings the newest enterprise headlines from the ground of the New York Stock Exchange as markets shut for buying and selling Wednesday, January seventeenth.

Full Video Transcript Below:

J.D. DURKIN: I’m J.D. Durkin, reporting from the New York Stock Exchange. Stocks had been within the pink to shut out right this moment’s session. The Dow closed 94 factors decrease, the Nasdaq closed almost six-tenths of a % decrease, and the S&P closed up half a %. This comes after a better-than-expected retail gross sales report, which noticed a resilient shopper, with spending up 0.6 % in December. Investors are involved that this might throw chilly water on rate of interest cuts within the close to future.

In different information, the Biden administration has proposed new guidelines that will save shoppers billions of {dollars} a 12 months on financial institution overdraft charges. According to the Consumer Financial Protection Bureau, shoppers are sometimes charged $35 for an overdraft mortgage, though the vast majority of shoppers’ debit card overdrafts are for lower than $26 and are repaid inside three days. Big banks make roughly $9 billion a 12 months in income from overdraft charges alone.

But the brand new rule proposed by the CFPB might see these charges lowered to as little as $3. The rule would apply solely to these banks and credit score unions with a minimum of $10 billion in belongings. Of the proposed adjustments, President Biden mentioned, “Today’s proposal would cut the average overdraft fee by more than half, saving the typical American family that pays these fees $150 a year. That would add up to save families $3.5 billion every year.”

The Biden administration has been adamant about cracking down on “junk fees” and forcing corporations to be extra clear about what shoppers are literally being charged for.

That’ll do it on your every day briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheAvenue.

Source: www.thestreet.com”