Dimon Took Heat But Regional Banks Rely More on Overdraft (1)

Wall Street bore the brunt of lawmakers’ assault on overdraft fees last week, but it’s regional banks that rely most on that revenue, according to a note Tuesday from Morgan Stanley.

Consumer overdraft fees accounted for almost 5% of 2020 revenue at Alabama’s Regions Financial Corp., the bank most dependent on those charges, according to the note. They represented around 2% of revenue at firms including Citizens Financial Group Inc. and Huntington Bancshares Inc.

That contrasts with the nation’s biggest banks. Such fees generated just 1.2% of revenue at JPMorgan Chase & Co., a figure that’s in line ...