Banks need their overdraft fees.  From the story:

A banking executive pushed back against parts of a bill that would limit the overdraft fees banks could charge customers, according to remarks prepared for a U.S. Senate Banking Committee hearing on Tuesday.

Objecting to a provision of the overdraft bill capping fees for covering insufficient funds at one per month and up to six per year, Citigroup Inc. (C) warned that as a result banks could stop paying overdrafts altogether, according to prepared testimony of John Carey, the chief administrative officer of Citigroup’s North America Consumer Banking department.

“It is impossible for banks to predict which customers will be responsible for those losses, so a very real result may be that banks eliminate payment of overdrafts,” Carey said in his remarks.