Thursday, January 25, 2007

More from Jack Layton

Jack Layton has another bee in his bonnet, and as usual his rhetoric runs ahead of his common sense. Layton said, "The NDP believes hard-working Canadians should not be charged by their banks when they deposit, withdraw or transfer their own money using an ATM." Sounds good. Gets him some press. But runs a bit counter to reality.

The banks aren't making anything off me, if I choose not to use their services. But if I choose to deposit money in Bank X and use the ATM machines of Bank Y, then yes a fairly significant convenience fee applies. And that is what I'm paying for; convenience. I can use the ATM machines of my own bank for little or no fee, but if I want the convenience of being able to withdraw money from whatever ATM machine happens to be closest to me then sure, it costs me something.

Now if you really believe the banks are getting rich off the backs of poor working class folks, do what I did and invest in bank stocks. And while you're at it, invest in some oil companies too (which is also what I did). Of course I resent Layton's implication that those of us who have worked and saved and invested in banks are somehow less hard working than other Canadians. Like many Canadians, both poor and rich, I work hard.

Finally, when Layton is spreading his rhetoric, does he realize how many Canadians he's hurting? It's not just guys like me who have invested a few thousand in some banks. It's the retired folks who are counting on the dividends Canadian banks pay, in order to fund their retirement. It's the countless Canadians who have invested in mutual funds. And it's all the pension plans of unionized NDP supporters who need a good return from their bank stocks in order to pay the pensions out to their members.

Think Jack. Think before you find a new bandwagon to jump on.

3 Comments:

Anonymous Garrett said...

How come other countries can get away with this kind of policy without seeing their banking systems fall to ruin?

I don't get why we have to pay more for the 'privilage' of accessing our money than EU countries do.

When ATM cards became popular (i.e. when the banks created them) banks were able to save millions by cutting staff and closing branches. They made their money and then turned around and dinged us for more.

12:00 PM  
Blogger Shawn Abigail said...

Jack's statements just don't make sense. Jack uses the practice of American banks to support his position that fees for ATM use should be banned. Since when did the Left concern itself with what the Americans are doing. If the American banks are charging a certain fee, does that make it right for Canadian banks to do so?

Likewise, Jack talks about this terribly burdensome fee, but then says it shouldn't hurt the banks to abolish it because it's only 5% of their revenues. So is it some huge cash grab, or not?

4:13 PM  
Blogger Rileysowner said...

While I am against bank fees for normal day to day transactions with your own bank, two things need to be said here.

1) As stated, if you want the convenience of using another bank's machine or one of the independent machines, paying a fee is part of that.

2) Why ban bank fees when there are plenty of financial institutions (ING Direct and PC Financial are two that come to mind) who do not charge fees for daily transactions. The option is there. If people don't use it, it is their choice. As for me I will avoid any fees I can.

1:59 PM  

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