Confession from a credit union official
March 14, 2010 | alternatives, industry | Comments (0)I think he’s saying the credit union can’t make any money:
“We’re an alternative to payday lending,” Bowman said. “It’s a really tough business model to crack. You saw our net worth ratio. It’s a near-death experience.”
Hope in AZ
March 14, 2010 | Arizona, industry, regulation | Comments (0)From the story in AZCentral.com:
There is a revived legislative effort to keep the high-interest lending industry alive in Arizona, but this version includes a payout to community groups.
Sen. Russell Pearce, R-Mesa, has proposed a strike-everything amendment to House Bill 2370 that would, among other things, allow fees of $15 per $100 borrowed, restrict the number of loans an individual could take out at one time and allow a customer to rescind the transaction if he or she returns the money within two business days.
Taking the Hill
March 13, 2010 | alternatives, federal legislation, industry | Comments (0)Capitol Hill that is. The Bankers have fixed bayonets and are ready to charge according to this story:
About 900 bankers will converge on Capitol Hill next week for a conference that lobbyists say will give them a chance to speak out against a proposed consumer protection agency as Senate Banking Committee Chairman Christopher Dodd unveils financial regulation legislation.
The American Bankers Association’s annual government- relations conference in Washington begins March 16, a day after Dodd plans to release a draft of his proposals for overhauling financial-industry governance.
It never stops
March 13, 2010 | federal legislation, industry | Comments (1)I’m talking about the bad journalism at the New York Times. From yesterday’s editorial about financial reform:
Lenders adamantly oppose a new agency, in part because their dodgiest offerings — like subprime mortgages of yesteryear or short-term “payday loans” — are often their most profitable.
The New York Times and the other media continually recite this canard that payday loans are very profitable. As we’ve said before, the filings of the public companies demonstrate that the industry makes average returns.
What is the Center for Responsible Lending?
March 12, 2010 | Center for Responsible Lending, federal legislation, industry | Comments (0)Big Government.com is taking a look in the must-read of the day:
The Center is headed by liberal crusader Martin Eakes. In 2008 Politico referred to Eakes as the “main intellectual engine driving Democratic responses to the housing crisis.”
The Center’s primary benefactors over the years have been the subprime mortgage speculators Herb and Marion Sandler who have given the nonprofit at least $20 million.
Unlike higher profile high-dollar liberal donors such as George Soros and insurance tycoon Peter B. Lewis (his company is called Progressive for a reason), the Sandlers have received very little media attention. They shelled out $13 million to left-wing groups in a failed effort to prevent President Bush’s reelection in 2004. This made them the third most generous donors in 2004 behind Soros ($27 million) and Lewis ($23 million).
The Sandlers have also given sizeable chunks of cash to the highly influential Center for American Progress, the liberal “action” tank run by Obama transition co-chief John Podesta. Incidentally, Podesta’s outfit recently put disgraced former green jobs czar Van Jones on the payroll. Jones is the self-described revolutionary communist forced from office last year when it was discovered that he was a 9/11 truther:
Who caused the collapse?
March 12, 2010 | federal legislation, industry | Comments (0)From CNNMoney:
Failings by Lehman Brothers executives and its auditor led to the bank collapse that unleashed the worst of the financial crisis, according to a report by court-appointed investigator.
Lehman “repeatedly exceeded its own internal risk limits and controls,” and a wide range of bad calls by its management led to the bank’s failure, the report says.
The conduct of Lehman executives “ranged from serious but non-culpable errors of business judgment to actionable balance sheet manipulation,” examiner Anton Valukas wrote in the report.
Why is Dodd going it alone?
March 12, 2010 | federal legislation, industry | Comments (0)From Politico:
The specter of health care has invaded Senate efforts to pass financial reform legislation, threatening to poison another Obama administration priority.
Republicans blamed health care reform for Senate Banking Committee Chairman Chris Dodd’s decision to unveil his own bill Monday without Republican backing. They said Dodd is doing so only to clear the decks for ramming through health care reform with reconciliation, which could chew up weeks of Senate time.
Secret weapon?
March 12, 2010 | federal legislation, industry | Comments (0)You’ll never guess who this columnist give that moniker to:
The person I have in mind is Elizabeth Warren. She chairs the Congressional Oversight Panel, which monitors the TARP bailout. But perhaps more important is her unofficial title: mother of the proposed Consumer Financial Protection Agency.
Arizona future
March 12, 2010 | Arizona, industry, regulation | Comments (0)From the AZStar:
Even if payday lenders get a majority of lawmakers and the governor to go along and allow them to continue doing business after June 30, payday-loan shops likely will have to shut down, at least temporarily.
A simple majority vote enacts a law 90 days after the regular legislative session ends. And at this point the earliest lawmakers are likely to wrap up their business is the end of April, meaning payday lenders couldn’t resume business until August.
It would take a two-thirds vote of both the House and Senate, as well as the governor’s signature, for immediate enactment.
Understatement
March 12, 2010 | South Carolina, federal legislation, industry | Comments (0)Senator Corker and the “cheap shot.”
