Following rival banks JP Morgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC), Bank of America (NYSE: BAC) will also be canceling its proposed $5 a month fee on debit cards after a severe backlash from consumers, reports Hugh Son for Bloomberg.
“For a lot of consumers, this was the last straw,” Jean Ann Fox, director of financial services for the Consumer Federation of America, said in the Bloomberg report. “Banks have been making a lot of changes to accounts, adding fees and raising the minimum balance needed, and consumers were clear that they objected to one more fee.”
Banking stocks were all mostly down Tuesday, led lower by Morgan Stanley (NYSE: MS), which shed 8%, and Citigroup (NYSE: C), which was down 7.6%. Bank of America shares lost 5.6% on Tuesday.
According to a prospectus sheet, Invesco PowerShares launched four new ETFs based on indexes from KBW. The provider will waive fees until Feb. 1, 2012 on the four funds. The ETFs include:
- PowerShares KBW Bank Portfolio (NYSEArca: KBWB)
- PowerShares KBW Capital markets Portfolio (NYSEArca: KBWC)
- PowerShares KBW Insurance Portfolio (NYSEArca: KBWI)
- PowerShares KBW Regional Banking Portfolio (NYSEArca: KBWR)
SPDR KBW Bank ETF
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Max Chen contributed to this article.