From Moeb $ervices:

According to Moebs $ervices, a reduction in overdraft fees will mean banking institutions could lose $1.95 billion of their incomes this year. That represents a 5 percent drop when compared to last year.

Michael Moebs, CEO of the company, said that new regulations and the effect of potential financial reforms from Congress will affect the ability of banks to make money from overdraft fees.

Starting this summer, a new rule from the Fed will require that banks get customer permission before enrolling them into overdraft protection programs. The idea behind the programs is to allow transactions to go through even if consumers don’t have enough money in their account.