IBC to Close Texas Branches, Cut Jobs. Cites New Debit Card Rule as Reason.

[Avalux]

Since they are no longer able to gouge people with fees for using their debit cards; IBC bank has made the business decision to close branches and add to the unemployment roles. One has to wonder....do they not make enough money without those fees, or is it just an excuse, to paint regulation as bad?
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Executives with Laredo-based IBC Bank say new banking regulations will dramatically reduce revenue, prompting them to shutter 55 branches by year's end, including nine in Central Texas.

The locations set to close are inside grocery stores. They will be shut down in the next 90 days, eliminating about 500 jobs, the bank said.

Federal limits that have been placed on "swipe fees" — the fees banks charge retailers for debit card transactions — are to blame, said Dennis Nixon, IBC chairman and CEO. IBC has been using revenue from those fees to keep many of its products and services free, he said.

"Government many times passes regulations that end up hurting the very people they were intended to help," he said. "This appears to be one of those cases."

http://www.statesman.com/business/ibc-bank-closing-9-central-texas-branches-1880934.html

[robinlynne]

1. let's nationalize the banks then. let them work for the people, as non-profits.

[LiberalFighter]

2. They cut the number of locations for branches that require 1-1 service

because they don't make enough with electronic payments that doesn't require human bank employees.

[banned from Kos]

3. I'll bet $100 this bank is on the FDIC's troubled bank list

about 600 banks on the list last time I checked.

They can only shut 1-2 per week.

[adhd_what_huh]

4. There were too many bank locations to begin with.

[ParkieDem]

5. This is Tony Sanchez's bank

... the Democratic candidate for Governor of Texas against Rick Perry in 2002.