North Carolina Banking Commissioner Joseph Smith issued this banality during a speech yesterday:

Smith said that banks should be accessible to deserving poor families so they aren’t forced to use “alternative financial services.” He was referring to companies such as payday lenders, which have been accused of high rates and abusive practices.

You would think a banking commissioner would understand the finances of the business.

Great website.

So says a couple of Republican senators.  From the Politico story:

The Obama administration’s chances of achieving a bipartisan victory on financial reform increased dramatically Wednesday as two top Republicans acknowledged the legislation would pass the Senate and Democrats sought to harness the momentum of their health care win.

One of those Republicans, Sen. Bob Corker of Tennessee, conceded that his party had made a “major strategic error” by refusing to back bipartisan negotiations before the bill passed out of committee. He suggested that Democrats are right to think they have the political advantage on the issue.

“This is so unlike the health care debate,” said Corker, who was working on a bipartisan deal with Senate Banking Committee Chairman Chris Dodd until two weeks ago, arguing it will be difficult to keep all 41 GOP senators together on financial reform.

“I don’t think people realize that this is an issue that almost every American wants to see passed. There’ll be a lot of pressure on every senator and every House member to pass financial regulation.”

“… almost every American wants to see passed.”  That’s quite a statement.

From the story:

Shops such as Vinton Pawn straddle the line between banking and retail — two business models that have been less than stagnant in the past year. Stagnant or not, almost 1,000 pawn shops opened in the past few years in the U.S. and at least two new storefronts have lit up in the Roanoke Valley: 220 Pawn & Gun Inc. in Roanoke County and Bargain Pawn in Salem.

The shops loan money at  usually $100 or less, plus 5 percent to 10 percent interest  and keep collateral, such as DVD players or hunting bows, in storage. If a customer defaults on the loan after 30 days, the item in pawn becomes merchandise.

A deflated economy has increased the stores’ revenues from loans and gold sales while slowing retail sales.

Johnny Hill, a 16-year industry veteran who works at Vinton Pawn Shop, says it’s the “golden age” and the “heyday” of pawn shops.

From Moeb $ervices:

According to Moebs $ervices, a reduction in overdraft fees will mean banking institutions could lose $1.95 billion of their incomes this year. That represents a 5 percent drop when compared to last year.

Michael Moebs, CEO of the company, said that new regulations and the effect of potential financial reforms from Congress will affect the ability of banks to make money from overdraft fees.

Starting this summer, a new rule from the Fed will require that banks get customer permission before enrolling them into overdraft protection programs. The idea behind the programs is to allow transactions to go through even if consumers don’t have enough money in their account.

Lots of columns and stories like this one and this one and this one about how if the Consumer Financial Protection Agency isn’t an “independent” agency it will be Armageddon.

No mention in these pieces about how consumers will get access to credit.

From today’s Washington Post:

Fresh off his victory this week on health care, Obama urged the Democratic sponsors of financial legislation in the Senate and House to press ahead with or without Republican backing, according to sources familiar with the 45-minute White House strategy session. The president told them the Democrats have the upper hand and should not give too much ground.

The chairman of the Senate banking committee, Christopher J. Dodd (D-Conn.), said after the meeting that he would seek final Senate passage of the bill a few weeks after Easter.

From the story:

The war to regulate payday loans in Colorado continues behind the scenes at the capitol here. Lobbyists and lawmakers are working hard to shore up votes for and against legislation introduced by Denver Democrats Rep. Mark Ferrandino and Sen. Chris Romer weeks ago. The bill is stalled for now as negotiations over proposed amendments continue.

“We are working the bill hard,” Ferrandino told the Colorado Independent. “And, as you know, the other side is definitely working it hard, too.”

Ferrandino laid the bill over after heated debate erupted around it on the floor of the House last Thursday, leading him to believe the bill might fail to pass.

A New York Times profile of Elizabeth Warren.

From Bloomberg’s new poll:

Congress is considering a proposal to increase oversight of consumer credit, including mortgages and
credit cards. To best serve consumers, do you think this should be a new, separate agency, with
complete independence and its own authority to make rules for consumer credit, or would it be better
to enhance the existing system to make sure bank regulators do more to protect consumers?
24 New, separate agency
69 Enhance the existing system
7 Not sure