STRATEGIC PARTNERS
March 6, 2002
LOS ANGELES -- Seattle-based Washington Mutual Inc., the nation's largest thrift and the third-largest financial institution operating in California, will eliminate surcharges at its nearly 1,000 California ATMs, according to the Associated Press.
The move will likely renew debate over the surcharge issue. Last year, Santa Monica and San Francisco outlawed surcharges, which prompted a legal battle between the cities and California' s two largest banks, Wells Fargo and Bank of America.
The San Francisco law never took effect. Santa Monica has been battling the banks in court to keep its ordinance on the books. A federal judge in August gave the city until Nov. 2 to overturn its previous action, saying local governments can' t pass laws affecting federally regulated banks.
Bank of America and Wells Fargo closed their ATMs to non-customers in Santa Monica.
"By eliminating our surcharge, we have a great opportunity to show potential customers who we are, what we stand for and how we operate differently from other financial institutions, " said Mike Amoto, manager of Washington Mutual' s ATM network. Amoto added that the bank expects to add new accounts because of the no-surcharge policy.
Eliminating fees will cost Washington Mutual no more than 5 cents per share annually, according to Los Angeles banking analyst Charlotte Chamberlain. Washington Mutual earned $896.8 million, or $1.75 per share, on revenues of $6.53 billion during the first six months of 2000.
Washington Mutual will donate $1.50, the amount it previously charged non-customers to use its ATMs, to charity for every non-customer transaction that occurs between Oct. 23 and Oct. 30. The bank also will make an initial donation of $100, 000 to kick off the campaign. The money will be given to the California Community Foundation, the San Diego Foundation, the Sacramento Regional Foundation and the San Francisco Foundation.
