Bank stocks have risen significantly. Everyone should know why.

Correction below: ABA contributed $2.2 million, not $2.2 billion for the 2024 cycle. I got a little carried away with the B dollars from the rescue funding. Excuse me. Open secrets.

Bank of America is trading above $47 today, up about 12 percent since the election. Yes, they are doing a lot better than they were when they got the $336 billion taxpayer bailout through TARP, the FDIC, and the Federal Reserve. Some of us still remember 2008-2009. Unfortunately, this is not the case for many.

Citigroup is up 14% today. Their bailout was even healthier, amounting to $476 billion. They were also too big to fail. They needed those tax dollars.

The US bank is trading above $52, up about 10% since November 5. Wells Fargo is over $74, up over 15%. You start to see a pattern. The banks are doing better.

Sure, TARP recouped the funds. The Fed is reducing its balance sheets and taxpayers are largely relieved. I think the lesson learned is that bailouts can work. So much for moral hazard. It will happen again, and taxpayers need to be there again.

But why are stocks rising so much today? Because the war on junk fees is over and the banks have won. The Consumer Finance Protection Bureau is probably dead, probably a victim of “government efficiency.”

Expect these junk fees to come back shamelessly and directly target the citizens who bailed out the very banks that charge them fees. No CFPB in the way, no Biden executive actions to contend with.

The American Bankers Association has donated over $2.2 million to candidates this cycle. About two-thirds of those went to Republican candidates. It’s time to pay off.

Overdraft fees are always a popular source of income. They are historically improved by sorting direct debit transactions from high to low, maximizing the number of overdrafts. Why bill for 1 cashed check when you can bill for 5? You can make billions for $30/transaction. Add monthly maintenance fees. Store deposits properly and process withdrawals immediately. Have your payments mailed to North Dakota, and perhaps the extra days you mail them will incur additional late fees. This is the genius of deregulation.

The 20 percent credit card rates aren’t going down any time soon either. I love hearing how good these high interest rates are because they allow people with bad or no credit to borrow money. Such selfless public service.

It’s not just the big banks that will flourish. Title loans and cash advances are far more profitable than even the largest reputable banks. Their customers are very reliable and pay incredible fees trying to pay off the $3,000 loan on the $1,000 car until they are bankrupt. I guess we were crazy to think the industry could ever be brought under control.

It is not just small depositors who are affected by these practices. When you open a 7-month “Featured CD” from Bank of America, you can get a 4.05% APR on your deposit. Not bad. However, read on. It will automatically renew at 0.03% if you do nothing. I think that’s the function. I bet a lot of people miss these pointers, and it makes me wonder how many Bank of America customers loan money at 0.03% so they can borrow it at 20%.

Be careful, we are entering the peak season for bank customers. Again. They expect big returns from their political contributions, and they will get them. Think carefully about your other options. Credit unions are a good thing, but not all are created equal. Local banks are worth considering, even if they don’t tend to stay local. Use your local bank’s ATM to avoid the fees. Pay cash where you can. More and more retailers are charging a surcharge, typically 3.5%, to cover their costs for access to the credit card network. If it’s a restaurant, consider paying in cash and paying the waiter an additional 3.5%, as increasing the minimum wage for service workers is unlikely to be successful in the next few years.

Above all, pay attention to what you say and read the small print. They are a great source of income. That is, until your tax dollars are needed again in the next round of bailouts.