BoA, Other Big Banks Being Reviewed for Antitrust Violations

Though banks went back on their proposal to impose fees for using debit cards, the incident is not over for several of the country’s biggest banks. The Los Angeles Times reports that the U.S. Department of Justice could begin looking into the possibility of antitrust violations among the banks involved.

Several of the country’s largest banks – including Bank of America, JPMorgan Chase and Wells Fargo – looked to recoup losses from the new limits on debit card transaction fees in part by charging customers in the range of $5 per month to use their debit cards.

Though the banks changed their plans in the wake of a public outcry and a flood of customers moving their accounts, Representative Peter Welch, a Democrat from Vermont, decried the incident as a likely case of collusion, or at least price signaling.

Welch and several other House Democrats called on the Justice Department to investigate the banks for possible antitrust violations, according to Bloomberg. Assistant Attorney General Ronald Weich responded that the incident would be reviewed for any possible violations.

“Please be assured that if it finds that individuals, banks or other parties may have violated the antitrust laws, the department will take appropriate action,” Weich wrote in the letter.

Dividend ETFs attracting significant inflows

Dividend Exchange traded funds (ETFs) have been attracting substantial capital inflows as investor market volatility persists.

The yields that are currently being generated by other market opportunities are driving investors to seek out these financial instruments, according to Risk Magazine. Pershing Securities, a New Jersey-based firm that offers structured financial instruments and and ETFs as well as acting as a clearing house, has observed the number of ETF positions taken by clients of its firm spike 56 percent in the last year.

“With current yields in the U.S., investors are looking outside of just money markets and bond funds… and a lot of the answers are coming in the form of equity dividends,” Sandra Motusesky, director of investment solutions for product management and development at the company, told the media outlet.

Dow Jones has responded to the surging demand for these dividend paying funds by offering more dividend indices, according to the media outlet. Of the ETFs that have seen the largest of influx of funds this year, several of the top five are appealing because of their dividends, ETF Database reports.