For Immediate Release
Chicago, IL – June 26, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JPMorgan Chase & Co. (JPM), Commerce Bancshares, Inc (CBSH), Bank of America Corporation (BAC), U.S. Bancorp (USB) and Wells Fargo & Company (WFC).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
JPMorgan to Terminate Overdraft Fees
JPMorgan Chase & Co. (JPM) is set to drop overdraft fees on debit card transactions of $5 or less, effective next month. Currently, the company charges $34 per purchase, irrespective of the size of transaction. With implementation of this change, customers will be relieved of paying fees on smaller transactions.
The decision to scrap fees stems from the lawsuit settlement that cost JPMorgan $110 million in damages. Infuriated customers, who condemned the bank’s dubious ways of overcharging overdraft fees, had filed this class action lawsuit. The bank’s decision to nullify overdraft fees seems to be a measure to work upon its dented goodwill.
JPMorgan and several other major banks like Commerce Bancshares, Inc (CBSH) and Bank of America Corporation (BAC) were accused of reordering transactions from largest to the smallest, causing the balances to deplete faster. This made customers vulnerable to excessive fees. It caused a nationwide uproar, and the customers filed various lawsuits demanding compensation. It also necessitated regulatory authorities to take measures against banks’ unwarranted activities.
Earlier this year, JPMorgan had reduced its overdraft protection transfer fee from $12 to $10. Also, the fee charged for stop payment was lowered to $30 from $34. In addition to this, if stop-payment is appealed via phone or online, the bank will charge $25 instead of $27. All of these measures have placed JPMorgan apart from the rest of the banking giants, which have resorted to fee hikes.
Some banks, like U.S. Bancorp (USB), are set to increase the overdraft fees considerably. Wells Fargo & Company (WFC) has introduced a monthly checking fee of $7. According to a survey conducted by Consumer Federation of America, many more banking institutions are about to follow this trend. This will come as a major setback for customers, who are reeling under high fees.
Of late, JPMorgan has been in the news for the all wrong reasons. Lawsuits, losses and the recent downgrade of credit rating by Moody’s all dealt blows to the banking giant. Therefore, the action to reduce various fees can be counted as a plan to improve public relations by the bank.
Currently, JPMorgan retains a Zacks #4 Rank, which translates into a short-term Sell rating. Considering the fundamentals, we maintain our long-term Neutral recommendation on the stock.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com
- Financial Technical Analysis
- Bank of America Corporation
- Bank of America Corporation