House Panel Exempts Over 8,000 Banks From Oversight

New York Times:

Bowing to political pressure from community bankers, the House Financial Services Committee approved an exemption on Thursday for more than 98 percent of the nation's banks from oversight by a new agency created to protect consumers from abusive or deceptive credit cards, mortgages and other loans.

Read the whole story: New York Times

Comments

[kingbuzz]

01:05 PM on 10/17/2009

still cant believe this is not getting more coverage.
oh yeah the media is owned by the banks just like congress.

[Stock market]

12:41 PM on 10/17/2009

More work needs to be done to ensure equality in America so we can all life the American dream, instead of wall street

hat tip to: http://tiny.cc/financenews

[BrianJDonovan]

06:46 AM on 10/17/2009

The average interchange fee in the U.S. is seven times the interchange fee set by Visa and MasterCard in countries throughout the rest of the world. Using 2008 figures, if the interchange fee charged by credit card issuers was decreased (via comprehensive credit card reform legislation) from the current 2.10% to 0.60%, the result would be an annual savings of approximately $34.3 billion for U.S. merchants and consumers. Credit card issuers could retain 0.3% as a processing fee, the remaining 0.3% could be a "tax" used to fund a Natural Disaster Trust Fund (NDTF). In 2008, this would have generated $6.86 billion in funding for a NDTF.

Let's be clear. The interchange fee is a hidden tax, just not a tax subject to political control or for which there is any discernible social benefit. Decreasing, and imposing a transparent tax on, the interchange fee would have the same stimulus effect of a tax break, but without an impact on the federal budget.

The following article discusses how comprehensive, standardized, simplified, and transparent credit card reform legislation may fund a Natural Disaster Trust Fund.

http://www.csnews.com/csnews/images/pdf/creditcardreform.pdf

[World Citizen]

01:13 PM on 10/17/2009

First of all, I would like to thank Huffington for deleting the 100+ comments (basically stating same as above) of BrianJDonovan in numerous blogs.

The oversight mentioned in this news article concerns the interest rates imposed by card companies, NOT interchange fees.

What BrianJDonovan suggests is quite detrimental for U.S. consumers.

Brian says that the interchange fees for card in the U.S. are quite higher than in other countries. Indeed, he quotes the 0.60% interchange fee her in Europe for DEBIT CARDS. Interchange fee for credit cards in Europe is higher than this. Additionally, Brian does not probably realize that here in Europe, banks more than make up for the 'low' interchange fee by charging their cardholders, annual fees.

For example, here in France, a cardholder pays an average of 120 euros per year for a debit card (note, this is not even a credit card). Brian's suggestion would be quite detrimental for U.S. consumers as annual cardholder fees would likely be applied by banks.

Why not look at the sales tax in the U.S.? The VAT (value added tax) here in Europe which is 19.6% is quite high. But no one complains since it's never added to the purchase price. The purchase price already includes this 19.6% VAT. Instead of attacking interchange fees, why not look at changing the presentation of sales tax in the U.S.? In the same way, states can increase their sales tax to fund certain needs.

[anticapitalist1983]

01:02 AM on 10/17/2009

put up a poster in your neighborhood to show your displeasure with the financial crisis: http://www.scribd.com/doc/21140663/wallst

"wall street is at war with america"
it's time to stand up and say enough!
we need to do our own oversight. we need to hold these banks accountable one way or another.

[larry278]

09:54 PM on 10/16/2009

When HP uses anything from the NYT, it is essential to read all of the comments HP posts to learn what the NYT was trying to say, There are even times when even the programmed rants of trolls lead other users of HP to what the NYT was trying to say &/or what the NYT had said in spite of itself.
I have an off thread question, would this measure lead to the FDIC forcing fewer banks to fold?
So far-FDIC didn't fold any banks last week &, as of 9:45 PM, EDT, 10/16/09, the FDIC site shows that only 1 bank was folded by the FDIC this week.
After reading the comments by HP users, I assume that even more middle & lower income debtors will be forced to seek the protection of bankruptcy when more (as in almost all) banks are exempt from regulations & monitoring by Uncle Sugar. Greed will go unchecked. Banks will wax rich. In other words: SS/DD. Banks will continue robbing people.
To over simplify things, if an individual robs a bank, the individual pays a penalty for that is a crime. If a bank robs many individuals, there is no penalty for the bank; that is how banks make money. It's just business.

[ClarcKing]

02:42 PM on 10/16/2009

Terminate the international monetary financial system; it is not an economic system; it is a killing machine. Usury and speculation in every financial transaction is unsustainable, which is why trillions in bailouts are demanded and trillions more in the future. Our domestic banks are predatory monsters bleeding the population.

Put the Fed into bankruptcy protection receivership reorganization, get the bailout trillions back, banks that qualify will join the U.S. National Bank under re-enacted Glass-Steagall standards.Banks will serve. Credits and currency will be issued into the population's physical economy; with the executive of creating, improving and expnanding the necessary facilities that enhance human survival/our standard of living. Healthcare can be achieved simply by expanding Social Security and Medicaid.

Only the United States can confront the International Monetary Financier Power, can lead and cooperate with other nations in reorganizing the world economic/financial system.

[vm12608]

02:01 PM on 10/16/2009

To Moderation: The comment below has not been posted.

Thanks "endlessirony." You are right. The banks who need the oversight most are the big boys who "control 80% of the banking." The small community banks have had such a tough time competing they have allowed themselves to be taken over by the big banks or have had no choice but to do so. The big banks must be broken down into far smaller entities.

Also, if we do not have strict and immediate campaign contribution reform, we can all just continue to sit back and bitch because nothing will change US gov't ownership by big business.

[vm12608]

01:49 PM on 10/16/2009

Thanks "endlessirony." You are right. The banks who need the oversight most are the big boys who "control 80% of the banking." The small community banks have had such a tough time competing they have allowed themselves to be taken over by the big banks or have had no choice but to do so. The big banks must be broken down into far smaller entities.

Also, if we do not have strict and immediate campaign contribution reform, we can all just continue to sit back and bitch because nothing will change US gov't ownership by big business.

[Stock market]

01:32 PM on 10/16/2009

Unemployment still out of control and unfortunately we do not have anything that even
resembles a jobs plan from our wonderful leaders. Bailouts, tarp, health plans but no jobs.

hat tip to: http://tiny.cc/financenews

If this is change we can believe in, count me out in 2012

[Peter Noble 2]

01:14 PM on 10/16/2009

Can you imagine if Barney actually lived in a fantasy world where the Dems held a workable majority in the House? It must be so hard having the Republicans in the majority that he has to cut deals like this?
President McCain also makes any chance of real reforms all the harder.

[TJCole]

12:50 PM on 10/16/2009

Oh I can feel the change from here....

Oh yeah, real change...

[TJCole]

12:34 PM on 10/16/2009

WTF..?

It's getting worse everyday...

[sfsoma]

12:27 PM on 10/16/2009

This is just plain stupid and so is Barney for going along with it. Are we to be held hostage by the corruption of the Senate and House Reps, as they merrily deposit their bribes from the financial industry in their banks? You can only push people so far before they start to makes moves to take back their government from these corrupt, power hungry politicians of all parties. They are setting the stage for a revolt if they keep this kind of stuff up.

[kingbuzz]

11:54 AM on 10/16/2009

four hundred hits to see jan jones boobies. thirty five here.

[kingbuzz]

11:34 AM on 10/16/2009

why is this not front page?