On October 6, I wrote about President Obama's ridiculous attack on Bank of America for its plans to impose a $5.00 monthly debit-card fee, and I explained how competition is the best way to limit profits. Specifically, I said, "Bank of America may have made a mistake by introducing this fee. If so, its competitors will pounce. They will begin advertising debit card services with lower fees or no fees at all. Bank of America will notice that it is losing customers."
This is exactly what happened. Several competitors said they would not impose debit-card fees and some customers started switching banks. Here's the latest from Bloomberg: Bank of America Eliminates Plan for $5 Debit-Card Fee. It wasn't government regulation that convinced Bank of America to scrap the fee. It was competition.