Overdrafts Decided Super Bowl Winner Per Moebs Study
Team City with Lowest Overdraft Price Always Loses
Team City with Highest Overdraft Price Always Wins
LAKE BLUFF, Ill.--(BUSINESS WIRE)--Modern economics provides solutions. Now economics just may also help you decide who wins Super Bowl XLVIII. Based on a study by Moebs Services, an economic research firm in Lake Bluff, Illinois, the team’s city that has the highest fee for an overdraft, a transaction which causes the checking account balance to be negative, wins the Super Bowl. Michael Moebs, economist and CEO of Moebs Services, said, “Everyone here at work is interested in the Super Bowl, so we searched our extensive, statistical database of fees, rates and balances and found that in the last two Super Bowls the winning team was from a city that had a higher overdraft price than the losing team’s city. Based on this, Denver will defeat Seattle and win Super Bowl XLVIII.”
“Interestingly, the Super Bowl winner often is one of the heavily penalized teams, so having a high fee to discourage or penalty price appears to have a strong correlation to winning the Super Bowl”
|Losing Team||Median OD Fee|
|2013/14||Denver Broncos est.||$33.00||Seattle Seahawks est.||$28.50|
|2012/13||Baltimore Ravens||$30.00||San Francisco 49ers||$25.00|
|2011/12||New York Giants||$30.00||New England Patriots||$27.00|
|Source: Moebs $ervices statistical Survey to 2,890 banks, thrifts and credit union from January 2 – 10, 2014.|
There are two very basic approaches to overdrafts used by most banks, thrifts and credit unions in the United States. One approach is to treat overdrafts as a penalty, charging a high price to prevent overdraft use. This is done to discourage a consumer or small business from allowing their checking account to go negative and promoting reconciliation of their checking account as prevention. The other approach is to treat the overdraft as a safety net, using a low price, recognizing that people are prone to making mistakes.
“Interestingly, the Super Bowl winner often is one of the heavily penalized teams, so having a high fee to discourage or penalty price appears to have a strong correlation to winning the Super Bowl,” notes Mr. Moebs. “Also, San Francisco has one of the lowest prices for an overdraft in the country, so, if the correlation holds, San Francisco can expect to never win the Super Bowl.”
About Moebs $ervices, Inc.
Moebs Services, an independent economic research firm established in 1983, collects statistically significant, primary empirical data about financial institutions’ services, pricing, operating expenses and financial condition. Data is then analyzed in a counter-intuitive manner, resulting in solutions that make sense. A special Risk and Pricing Program is being offered on February 10-12, 2014 in Palm Springs, CA. For more info please visit www.moebs.com
About G. Michael Moebs, Economist & CEO
Founder & CEO of Moebs $ervices, Inc., Mike is known for his proprietary research addressing topics such as stress testing, economy of scale and “near money” analyses. He has served as a bank president, chief operating officer of a multi-bank holding company, director of a credit union and director of eight different banks. Mike has authored seven books on risk, and 13 more on lending, expense control, and pricing and is the force behind Moebs Services Pricing Institute. He directs Moebs Services Pricing Surveys published four or more times annually.