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Credit card overhaul cuts bank fees by $5B

New credit card and overdraft restrictions will save U.S. consumers from being charged at least $5 billion in fees this year alone at the largest U.S. retail banks and credit card companies, a USA TODAY analysis reveals.
The analysis — based on institutions' own estimates — comes during a year when new rules are kicking in to address unfair credit card rate increases and steep bank overdraft fees. It highlights the sizable dent these rules will have on an industry blamed for pushing consumers deeper into distress during the recession.
In recent years, banks made it easier for consumers to overdraw their bank accounts and raised credit card fees and rates. As consumer outcry swelled in the recession, Congress passed a credit card law and the Federal Reserve issued a regulation to crack down on banks' aggressive overdraft policies on debit cards.
Lawmakershope the restrictions will mean much-needed savings for consumers, boosting spending and the economy. Indeed, new data show the measures are their "own little stimulus for the economy, keeping billions in the pockets of consumers rather than in profits gained from deceptive practices," says Rep. Carolyn Maloney, D-N.Y., co-author of card reform signed into law last year.freedom
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GM swings to first quarterly profit in yearsGeneral Motors on Monday reported its first quarterly profit in nearly three years, as the automaker rescu

General Motors on Monday reported its first quarterly profit in nearly three years, as the automaker rescued last year by the U.S. government gained strength with the recovering economy.
The company, which shed billions of dollars in debt in a bankruptcy last year, earned $865 million in the first quarter, compared with a $6 billion loss in the year-ago period.
"In summary, it was an extremely good first quarter for General Motors," Chris Liddell, GM vice chairman and chief financial officer, said in a call with reporters and industry analysts. "Posting a profit and generating positive cash flows are important steps as we work to rebuild General Motors."
Also Monday, the Obama administration said it plans to spend $800 million to help redevelop about 90 closed GM plants in 14 states into other business uses.
The United States has invested $50 billion in General Motors, and a substantial return on that investment depends on the revamped company making a profit.
The automaker has repaid $6.7 billion in loans. But the vast majority of the U.S. investment cannot be returned until the company goes public and the government sells its equity share. Whether the United States can fully recover its investment depends upon the stock price.
GM's profit for the first quarter is in part a validation of the business plan crafted so that it could emerge from bankruptcy a leaner corporation. One of the main goals was to downsize so that GM could make a profit even if U.S. auto sales remain depressed by the economic downturn. The company slashed payrolls and shed major brands such as Pontiac, Hummer and Saturn.
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Liddell attributed the drop in market share to the lower prices Toyota put in place after the negative publicity about its safety recalls.
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