Biden administration announces effort to target ‘junk fees’ at banks

The Biden administration on Wednesday rolled out new measures aimed at what it described as two practices involving “junk fees” at banks KBE, +0.97%. The White House said in a news release that the Consumer Financial Protection Bureau has issued new guidance targeting “overdraft fees charged when consumers had enough money in their account to cover a debit charge at the time the bank authorizes it,” as well as “the practice of indiscriminately charging depositor fees to every person who deposits a check that bounces.” The release comes as the White House said President Joe Biden would deliver remarks on Wednesday morning about “new actions to provide families with more breathing room,” in a reference to how Americans are struggling with raging inflation. Republicans have seized on high prices ahead of the midterm elections, which are less than two weeks away.