More wow
June 29, 2010 | federal legislation, industry | Comments (1)The conference is reopening. (This will NOT affect us.) From Politico:
In an extraordinary move aimed at winning over reluctant Republican senators, the top Democratic negotiators on the Wall Street reform bill will reopen the conference committee Tuesday to swap out a controversial $19 billion tax on big banks, according to House and Senate aides.
The unusual development points to deepening troubles for Democrats in their push to finish the bill before the July 4 recess. The death Monday of Sen. Robert Byrd (D-W.V.) and the decision by Sen. Scott Brown (R-Mass.) to oppose the bill unless the tax was removed left Democrats several votes shy of Senate passage.
Other key Senate Republican holdouts — Susan Collins of Maine, Olympia Snowe of Maine and Chuck Grassley of Iowa — also expressed concern with the tax, saying they were surprised to learn that it was added early Friday morning during an all-night committee meeting.
Wow
June 29, 2010 | federal legislation, industry | Comments (0)From the American Banker:
In an attempt to satisfy Republicans who are turning against the reform bill, the conference committee is expected to reopen negotiations this afternoon and strip out a proposed bank tax from final legislation.
Instead, lawmakers are considering raising the required minimum level of reserves at the Federal Deposit Insurance Corp. — a move that would force all banks, not just the largest that were subject to proposed tax, to pay millions more in premiums.
They are desperate for Republican votes in the Senate.
Exactly
June 29, 2010 | federal legislation, industry | Comments (0)From RedState.com:
Consumer Restrictions – The bill creates a “Consumer Financial Protection Bureau” (CFPB) with jurisdiction over all sorts of financial products offered by banks and non-banks (Sections 1002 and 1021). Non-bank financial products include your Sears credit card and even agreements to repay your auto mechanic or orthodontist in monthly installments. Mortgages, personal loans, payday loans and check cashing services will also be subject to new restrictions in the name of “protecting” consumers from their own choices. While there is a clear need for more responsible lending standards than were used in recent years, this CFPB will make credit more inaccessible even for credit-worthy families and entrepreneurs.
And even more opinion…..
June 29, 2010 | federal legislation, industry | Comments (0)Politico’s “The Arena” takes on financial reform.
Feingold’s reasoning
June 29, 2010 | federal legislation, industry | Comments (0)Can’t argue with it. From The Hill:
“As I have indicated for some time now, my test for the financial regulatory reform bill is whether it will prevent another crisis,” {Senator Russ} Feingold said in a statement. “The conference committee’s proposal fails that test and for that reason I will not vote to advance it.”
They tried to do too much instead of just focusing on preventing another financial meltdown.
More opinion
June 29, 2010 | federal legislation, industry | Comments (0)We like this one from National Review better than the one below:
Perhaps the worst element of the bill is the creation of a new Consumer Financial Protection Bureau, housed in the Federal Reserve, with nearly unlimited rulemaking and enforcement authority and a funding mechanism that appears to involve taking whatever money it finds lying around Fed headquarters. This is a recipe for an out-of-control regulator with the incentive and the means to restrict forms of credit based on the outside chance that an irresponsible minority might use them unwisely. Some liberals are unhappy that a last-minute amendment placed auto dealers beyond the bureau’s reach. They should grow accustomed to the politicization of financial activity in the wake of this legislation, in which most businesses would be wise to invest more in their D.C. lobbying shops than in expanding their commercial operations.
Comment of the Day
June 29, 2010 | federal legislation, industry | Comments (0)Regarding situation in Arizona:
Not to mention all the real-estate that is now vacant and millions of Arizona residents without a viable credit option for them when they need it. Plus watch as those residents turn to the internet lenders then if some of them are offshore they may abuse some of Arizona’s Customers leading to complaints to their state regulators who will not have an answer because some of these lenders will most definitely be out of their jurisdiction. Once again the road to hell is paved with good intention.
No shortage of opinions
June 29, 2010 | federal legislation, industry | Comments (0)Here’s another one from Marketplace:
Consumer protection agency. A needed body, but unfortunately it will be run by the Fed which now will have to tackle payday lenders, check cashers and other non-bank finance companies. For the Fed’s prowess in regulation, see No. 4. Also, lobbyists scored a victory in that auto dealers are exempted. “No money down. No credit check,” still lives for what’s usually the second-biggest financial decision for a household.
Interesting
June 29, 2010 | federal legislation, industry | Comments (0)Couple of GOP Senators wavering on support of financial reform conference report. Because this is a Congress Daily subscription service, I’ll just excerpt:
House and Senate Democratic leaders hope to push ahead with votes this week on the conference report overhauling the financial regulatory system, but crucial Republican votes in the Senate appeared to be wavering because of the last-minute addition of a bank tax.
Monday’s death of Sen. Robert Byrd, D-W.Va., has narrowed the Democrats’ margin for error in attempting to get the report through the Senate. The Senate bill passed in May on a 59-39 vote, with Republican Sens. Olympia Snowe and Susan Collins of Maine, Chuck Grassley of Iowa and Scott Brown of Massachusetts voting for final passage.
Byrd did not vote on final passage.
With a current caucus of 58 and no clear timetable for Byrd’s replacement being appointed, Senate Democrats will need to hold all four GOP votes to invoke cloture and pass the bill, due to the continued opposition of Democratic Sens. Russ Feingold of Wisconsin and Maria Cantwell of Washington.
But since the conference committee completed its report, Snowe, Collins and Brown have all come out against an FDIC assessment on the largest banks and hedge funds to help close a $19 billion hole Democrats said was needed to make the bill budget neutral.
Heh, heh, heh
June 29, 2010 | Utah, alternatives, industry | Comments (0)From a story out of Utah:
Although the loans are advertised under a different name, those who are opposed to the offerings are calling them payday loans.
“I’m just highly offended and outraged that they would offer this kind of a loan,” said Nancy Groshart, of Ogden. “I think it’s worse than going to a payday loan place because at least they advertise that it’s a payday loan.”
Er, uh, maybe the loans can’t be made any cheaper.
