DARUSHIMO

Some experts warn that a sharp reduction in overdraft fees could put weakened financial institutions out of business. Michael Moebs, an economist who advises banks and credit unions, said Ms. Maloney’s legislation would effectively kill overdraft services, causing an estimated 1,000 banks and 2,000 credit unions to fold within two years. That is because 45 percent of the nation’s banks and credit unions collect more from overdraft services than they make in profits, he said. “Will they be able to replace it with another fee?” Mr. Moebs said. “Not immediately and not soon enough.”