BofA Chief: We Have a 'Right to Make a Profit'

[Newsbot]

WASHINGTON (CNNMoney) — Bank of America's CEO defended his bank's new $5 fee on debit cards on Wednesday, saying that customers and shareholders understand the bank has a "right to make a profit."

Bank of America (NYSE: BAC - News) CEO Brian Moynihan defended the move, which the bank announced last week in response to new caps on debit card swipe fees that the banks charge retailers.

Bank of America's announcement of a new debit card fee was followed today by an announcement of new checking account fees by Citibank (NYSE: C - News). These new bank fees have fueled a populist backlash that has coincided with a series of protests against Wall Street banks around the nation.

Moynihan stopped short of criticizing President Obama who earlier this week said to ABC that banks don't have an "inherent right" to a "certain amount of profit."

But BofA's chief did say banks have an inherent right to make a profit in an interview Wednesday with CNBC's Larry Kudlow at the Washington Ideas Forum, sponsored by the Newseum, the Aspen Institute and the Atlantic magazine.

"I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders," Moynihan said.

Moynihan said that the bank will talk to its customers, teammates and shareholders and "they'll understand what we're doing — understand we have a right to make a profit."

Moynihan said the bank had made the fee clear and transparent to its customers and noted the bank had given plenty of advance notice because the fee won't kick in until next year.

But he said the new charge was necessary because the "ability to be profitable" in retail banking has changed. He added that Wall Street reforms in the so-called Dodd-Frank Act will cost his bank "billions."

When Kudlow asked Moynihan if he felt the bank was under attack, Moynihan said "no."

"We have the best bank in the world, we do a great job for our customers," he added.

Later, Moynihan was asked about an entirely different issue, whether he supported a proposed tax on millionaires that Senate Democrats proposed today.

He said he'd echo what he hears from his millionaire customers: "Yes, but what for?"

"If the belief is that it puts our fiscal house in order, then they support that," Moynihan said. "I'm a rich mother lover with serious bank. Do you think I care what our customers and the rest of the country think? Now out my way, foo, I need to gets me some new rims for my ride. Holla!"

[Ran]

I'm a Bank of America customer, and I agree that his bank has the right to make a profit. It turns out I have the right to switch banks, which I'm going to do. Suck it, Moynihan.

[vynsane]

BofA sucks so much. we moved our accounts out a long time ago, then the company our mortgage is held with was bought by them and they can't get their shit straight.

it amazes me that they think this will help them 'make a profit' - it's going to cause less debit transactions which means having to fill the ATM machines more and necessitating more than one teller window to be open at any given time. meanwhile, you hear that sound? that's the sound of air rushing into BofA's coffers as accounts are closed left and right. i think BofA went to the same business school as netflix.

[anarky]

I used to work at another bank, which, after many mergers, is now part of Wells Fargo.

We had a couple of former BofA employees there, who started around the same time I did.

Apparently, they were barely passable to work with when they were Nationsbank (on the east coast) and went straight to hell when they became BofA.

[Sleazer]

I have a credit card with them because they bought out MBNA (I got the Darth Vader credit card around 2005).

I don't have a checking account with them but if I did, I would tell them to fuck off by closing that account...they make plenty of money from my credit transactions already.