Totally agree. This is a problem that is easily solved by the free market. You get a high fee once, you will learn the lesson and either be more diligent or use a bank that has lower fees.

I think it's just a cheap shot by some politicians to get easy points. It always sounds good when they punish big greedy banks/corporations. But in reality those small regulations slowly add up each year and in the long run it makes it harder for smaller players to get into the space. And lack of competition makes it easier for bigger players to abuse their position. So the opposite of the original intent. And the cycle continues. More intervention needed etc.