Why we need big banks to be successful

If you’re like, well, most everyday Americans, you’ve probably spent the last few months angry about what’s going on at big banks. From bank fees on your personal checking account to big bonuses for top banking executives, account holders do have quite a few reasons to be frustrated with the largest financial institutions in the country.

However, as mad as you might be, those big banks are pretty important to our economic recovery as Paul R. Monica, Assistant Managing Editor at CNN, points out in this video. As the stock market watches some sluggish earnings reports from the likes of JPMorgan Chase and Citigroup, the economic recovery is at risk of stalling if these banks can’t turn it up a notch.

Now, I don’t expect this to change your tune and make you feel any better about handing over $10 each month for an “account maintenance fee” or dealing with subpar customer service. In fact, I would still vote that you look for a community bank that operates on a more fee-friendly approach toward their checking account holders. If you do still keep your cash at a big bank, though, perhaps this video will help to explain why those fees keep climbing. Their stock values are falling. If you’re only keeping a few thousand dollars in your account and you don’t have any kind of loan with the bank, you’re costing them money. As regulatory pressure continues to heat up on big banks, you’ll see more of those fees pop up on your monthly statement. I despise those fees just as much as you do, but I hope they pay off enough to keep the stock market on a steady positive path.

What do you think about the latest earnings reports from some of the biggest members of the banking industry?