Let's see Dodd-Frank go away, but...

[Slashsnake]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.

3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

4. Strip away the Durbin amendment. Let banks/networks charge whatever they want. If merchants feel like they're paying too high of an interchange fee, they'll stop taking cards or the networks will lower their fee, so in other words, the free market.

5. Force debit card swipes/inserts/taps to go over debit network and only credit card swipes/inserts/taps to go over VISA/MC/DISC/AMEX network.

6. Cap number of overdraft fees at 1 per day, with a maximum of $35, so yes, M&Shit bank will have to lower their fee by $3.50 to accommodate this.

7. Make wire transfers free and get rid of the automatic clearing house. Now America will have real technology that the rest of the civilized world has.

8.Because of regulations on #'s 2 and 3, loosen up lending underwriting and give out more loans to small businesses. When you're not sucking every penny out of your client, more will be willing to borrow from you.

9. Require a bank to offer at least one fixed rate credit card, variable is annoying.

 

[waltky]

Bring back Glass-Stegall.

 

[Toddsterpatriot]

Bring back Glass-Stegall.

Why?

 

[oldfart]

Bring back Glass-Stegall.

Why?

Because it works.

 

[oldfart]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

We have such institutions in most communities. They are called credit unions. Most offer free checking as well.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.
3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

My Benthamite streak will not allow me to so radically limit the right of free contract in an effort to protect people from themselves. Practically, such a proposal would only drive loan sharking further underground and make it more brutal. As a Socialist, I have to come down on the side of George Will on this one.

 

[Toddsterpatriot]

Bring back Glass-Stegall.

Why?

Because it works.

It doesn't stop banks from writing bad mortgages.

 

[Markle]

Bring back Glass-Stegall.

Why?

Because it works.

It doesn't stop banks from writing bad mortgages.

Which was due to Fannie and Freddie being required by the Congressional economic committees to INCREASE their percentage of sub-prime loans contributing to the housing/mortgage/financial meltdown.

 

[Slashsnake]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

We have such institutions in most communities. They are called credit unions. Most offer free checking as well.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.
3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

My Benthamite streak will not allow me to so radically limit the right of free contract in an effort to protect people from themselves. Practically, such a proposal would only drive loan sharking further underground and make it more brutal. As a Socialist, I have to come down on the side of George Will on this one.

When you force big banks to offer such accounts, you eliminate a huge revenue stream of overdraft fees. Some people are more comfortable with a big bank... Chase has better fraud protection than any other credit union out there, and that's just one reason. Many don't have 24/7 customer service either. Chances are a poor person will overdraft 100x more than someone who can afford a Chase Premier Platinum checking account will.

Why would making loans more affordable for consumers make loan sharking a more brutal business? People would move away from loan sharking if they were saving $50 a month on a $5,000 personal loan.

 

[EdwardBaiamonte]

Which was due to Fannie and Freddie being required by the Congressional economic committees to INCREASE their percentage of sub-prime loans contributing to the housing/mortgage/financial meltdown.

Yes, liberals required this in with their always increasing affordable housing goals!! In the end Fanny/Freddie ended up owning 75% of all Alt A and subprime mortgages!!


Barney Frank: "I hope by next year we'll have abolished Fanny Freddie... it was a great mistake to push lower income people into homes they couldn't afford and couldn't really handle once they had it"



"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."-Barney Frank

 

[Markle]

Which was due to Fannie and Freddie being required by the Congressional economic committees to INCREASE their percentage of sub-prime loans contributing to the housing/mortgage/financial meltdown.

Yes, liberals required this in with their always increasing affordable housing goals!! In the end Fanny/Freddie ended up owning 75% of all Alt A and subprime mortgages!!

Barney Frank: "I hope by next year we'll have abolished Fanny Freddie... it was a great mistake to push lower income people into homes they couldn't afford and couldn't really handle once they had it"

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."-Barney Frank

Like most politicians, he spoke out of both sides of his mouth. It is as if some of them live in an alternate world. As if they don't realize that virtually everything now is on tape or recorded somewhere. They talk like it doesn't exist.

His encouragement, as you show in your post, borders on being criminal. At the time they were both traded on the NYSE. Barney knew they were in trouble and encouraged people to buy their stock which then went South.

 

[oldfart]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

We have such institutions in most communities. They are called credit unions. Most offer free checking as well.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.
3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

My Benthamite streak will not allow me to so radically limit the right of free contract in an effort to protect people from themselves. Practically, such a proposal would only drive loan sharking further underground and make it more brutal. As a Socialist, I have to come down on the side of George Will on this one.

When you force big banks to offer such accounts, you eliminate a huge revenue stream of overdraft fees. Some people are more comfortable with a big bank... Chase has better fraud protection than any other credit union out there, and that's just one reason. Many don't have 24/7 customer service either. Chances are a poor person will overdraft 100x more than someone who can afford a Chase Premier Platinum checking account will.

Why would making loans more affordable for consumers make loan sharking a more brutal business? People would move away from loan sharking if they were saving $50 a month on a $5,000 personal loan.

Every study I have seen about trying to control interest rates (usury laws) concludes that when financial institutions are constrained by such laws, they are more careful on underwriting loans, and those who do not meet those tighter loan standards tend to go to unregulated (illegal) loan sources. Because such sources are illegal to begin with, they are free to use enhanced collection methods not available to legal lenders, and thus can afford to make the riskier loans. For this reason, I believe that limits on interest rates to protect consumers are a bad idea. Better to tolerate high risk lenders with high interest rates but regulated for allowable collection methods.

 

[oldfart]

Which was due to Fannie and Freddie being required by the Congressional economic committees to INCREASE their percentage of sub-prime loans contributing to the housing/mortgage/financial meltdown.

Yes, liberals required this in with their always increasing affordable housing goals!! In the end Fanny/Freddie ended up owning 75% of all Alt A and subprime mortgages!!


Barney Frank: "I hope by next year we'll have abolished Fanny Freddie... it was a great mistake to push lower income people into homes they couldn't afford and couldn't really handle once they had it"



"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."-Barney Frank

Ed, since the two Barney Frank quotes are clearly contradictory, and interesting, do you have dates for them? Just trying to figure out when he flip-flopped.

 

[Markle]

Which was due to Fannie and Freddie being required by the Congressional economic committees to INCREASE their percentage of sub-prime loans contributing to the housing/mortgage/financial meltdown.

Yes, liberals required this in with their always increasing affordable housing goals!! In the end Fanny/Freddie ended up owning 75% of all Alt A and subprime mortgages!!

Barney Frank: "I hope by next year we'll have abolished Fanny Freddie... it was a great mistake to push lower income people into homes they couldn't afford and couldn't really handle once they had it"

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."-Barney Frank

Ed, since the two Barney Frank quotes are clearly contradictory, and interesting, do you have dates for them? Just trying to figure out when he flip-flopped.

No surprise, Barney Frank changed his tune AFTER the collapse. Barney had reduced the loan standards for Fannie and Freddie at the same time his lover was on the board of directors of Fannie Mae entitling his lover too much higher bonuses.

 

[Markle]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

We have such institutions in most communities. They are called credit unions. Most offer free checking as well.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.
3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

My Benthamite streak will not allow me to so radically limit the right of free contract in an effort to protect people from themselves. Practically, such a proposal would only drive loan sharking further underground and make it more brutal. As a Socialist, I have to come down on the side of George Will on this one.

When you force big banks to offer such accounts, you eliminate a huge revenue stream of overdraft fees. Some people are more comfortable with a big bank... Chase has better fraud protection than any other credit union out there, and that's just one reason. Many don't have 24/7 customer service either. Chances are a poor person will overdraft 100x more than someone who can afford a Chase Premier Platinum checking account will.

Why would making loans more affordable for consumers make loan sharking a more brutal business? People would move away from loan sharking if they were saving $50 a month on a $5,000 personal loan.

Every study I have seen about trying to control interest rates (usury laws) concludes that when financial institutions are constrained by such laws, they are more careful on underwriting loans, and those who do not meet those tighter loan standards tend to go to unregulated (illegal) loan sources. Because such sources are illegal to begin with, they are free to use enhanced collection methods not available to legal lenders, and thus can afford to make the riskier loans. For this reason, I believe that limits on interest rates to protect consumers are a bad idea. Better to tolerate high risk lenders with high interest rates but regulated for allowable collection methods.

You're 100 percent right. I have been a Realtor in Florida since 1974. At the time we had a usury law for mortgages of 10%. That was during the time of the Jimmy Carter malaise. Interest rates were increasing and when could not make loans above 10%, they were forced to quit making loans. That stopped the resale market for homes as well as new construction. The effect was devastating and it took years to recover.

 

[Markle]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.

3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

4. Strip away the Durbin amendment. Let banks/networks charge whatever they want. If merchants feel like they're paying too high of an interchange fee, they'll stop taking cards or the networks will lower their fee, so in other words, the free market.

5. Force debit card swipes/inserts/taps to go over debit network and only credit card swipes/inserts/taps to go over VISA/MC/DISC/AMEX network.

6. Cap number of overdraft fees at 1 per day, with a maximum of $35, so yes, M&Shit bank will have to lower their fee by $3.50 to accommodate this.

7. Make wire transfers free and get rid of the automatic clearing house. Now America will have real technology that the rest of the civilized world has.

8.Because of regulations on #'s 2 and 3, loosen up lending underwriting and give out more loans to small businesses. When you're not sucking every penny out of your client, more will be willing to borrow from you.

9. Require a bank to offer at least one fixed rate credit card, variable is annoying.

As a hypothetical, what do you think would be the result if all your limits on any profit a bank could make were put into action. How would the banks maintain their profit margin?

 

[Slashsnake]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

We have such institutions in most communities. They are called credit unions. Most offer free checking as well.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.
3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

My Benthamite streak will not allow me to so radically limit the right of free contract in an effort to protect people from themselves. Practically, such a proposal would only drive loan sharking further underground and make it more brutal. As a Socialist, I have to come down on the side of George Will on this one.

When you force big banks to offer such accounts, you eliminate a huge revenue stream of overdraft fees. Some people are more comfortable with a big bank... Chase has better fraud protection than any other credit union out there, and that's just one reason. Many don't have 24/7 customer service either. Chances are a poor person will overdraft 100x more than someone who can afford a Chase Premier Platinum checking account will.

Why would making loans more affordable for consumers make loan sharking a more brutal business? People would move away from loan sharking if they were saving $50 a month on a $5,000 personal loan.

Every study I have seen about trying to control interest rates (usury laws) concludes that when financial institutions are constrained by such laws, they are more careful on underwriting loans, and those who do not meet those tighter loan standards tend to go to unregulated (illegal) loan sources. Because such sources are illegal to begin with, they are free to use enhanced collection methods not available to legal lenders, and thus can afford to make the riskier loans. For this reason, I believe that limits on interest rates to protect consumers are a bad idea. Better to tolerate high risk lenders with high interest rates but regulated for allowable collection methods.

Credit unions are regulated to a max of 17.99% as it is and are also known to have looser requirements than a big bank does for loans. People that get loans through loan sharking will still do the same regardless if the interest rates are capped or not. It's not hard to qualify for a loan below 18%, especially mortgages, personal loans, and lines of credit.

If people want to use loan shark services, be my guest, it doesn't effect me in the slightest, and if you're stupid enough to not pay your bills and have to resort to expensive interest rates, not my problem, nor is it the government's because they give the opportunity for clean borrowing at reasonable rates.

 

[EdwardBaiamonte]

[

As a hypothetical, what do you think would be the result if all your limits on any profit a bank could make were put into action. How would the banks maintain their profit margin?

lets be honest shall we, a liberal is a communist and controlling banks is but 1 of 1000 interventions he supports because he lacks the IQ to understand how freedom and capitalism work!!.

 

[Dont Taz Me Bro]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.

3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

4. Strip away the Durbin amendment. Let banks/networks charge whatever they want. If merchants feel like they're paying too high of an interchange fee, they'll stop taking cards or the networks will lower their fee, so in other words, the free market.

5. Force debit card swipes/inserts/taps to go over debit network and only credit card swipes/inserts/taps to go over VISA/MC/DISC/AMEX network.

6. Cap number of overdraft fees at 1 per day, with a maximum of $35, so yes, M&Shit bank will have to lower their fee by $3.50 to accommodate this.

7. Make wire transfers free and get rid of the automatic clearing house. Now America will have real technology that the rest of the civilized world has.

8.Because of regulations on #'s 2 and 3, loosen up lending underwriting and give out more loans to small businesses. When you're not sucking every penny out of your client, more will be willing to borrow from you.

9. Require a bank to offer at least one fixed rate credit card, variable is annoying.

Or how about the bank decides what the best business practice is for itself.

Now there's an idea........

 

[Slashsnake]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.

3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

4. Strip away the Durbin amendment. Let banks/networks charge whatever they want. If merchants feel like they're paying too high of an interchange fee, they'll stop taking cards or the networks will lower their fee, so in other words, the free market.

5. Force debit card swipes/inserts/taps to go over debit network and only credit card swipes/inserts/taps to go over VISA/MC/DISC/AMEX network.

6. Cap number of overdraft fees at 1 per day, with a maximum of $35, so yes, M&Shit bank will have to lower their fee by $3.50 to accommodate this.

7. Make wire transfers free and get rid of the automatic clearing house. Now America will have real technology that the rest of the civilized world has.

8.Because of regulations on #'s 2 and 3, loosen up lending underwriting and give out more loans to small businesses. When you're not sucking every penny out of your client, more will be willing to borrow from you.

9. Require a bank to offer at least one fixed rate credit card, variable is annoying.

Or how about the bank decides what the best business practice is for itself.

Now there's an idea........

Yes so we can end up in another 2008 crisis. Great idea.

 

[Toddsterpatriot]

1. Let's require banks to offer truly free checking accounts to people with an income less than $25,000/year, without all the bells and whistles of course, so no check writing, no overdrafts allowed (just declined debit cards), waived bank ATM (not ATM owner) fees, and none of the other "prestigious" benefits like discounts on loans. Banks of course will still make money from debit interchange fees from the #4 proposal, so there is still some profit here.

2. Place a cap on the amount of available credit one with less than $25,000/year can have at $2,000 between all credit card limits to avoid debt problems, no matter how good one's credit score is, and $3,000 for those who make a household income of less than $40,000 a year.

3. Require a maximum APR of 17.99% on loans including lines of credit and credit cards at big banks and community banks, like at credit unions. Place a housing APR max of 12.99% for first time mortgage borrowers and a 5.9% APR max for student loan re-consolidations.

4. Strip away the Durbin amendment. Let banks/networks charge whatever they want. If merchants feel like they're paying too high of an interchange fee, they'll stop taking cards or the networks will lower their fee, so in other words, the free market.

5. Force debit card swipes/inserts/taps to go over debit network and only credit card swipes/inserts/taps to go over VISA/MC/DISC/AMEX network.

6. Cap number of overdraft fees at 1 per day, with a maximum of $35, so yes, M&Shit bank will have to lower their fee by $3.50 to accommodate this.

7. Make wire transfers free and get rid of the automatic clearing house. Now America will have real technology that the rest of the civilized world has.

8.Because of regulations on #'s 2 and 3, loosen up lending underwriting and give out more loans to small businesses. When you're not sucking every penny out of your client, more will be willing to borrow from you.

9. Require a bank to offer at least one fixed rate credit card, variable is annoying.

Or how about the bank decides what the best business practice is for itself.

Now there's an idea........

Yes so we can end up in another 2008 crisis. Great idea.

Is the US government going to push banks to lend to risky home buyers?
Is the US government going to push Fanny and Freddie to buy hundreds of billions in crappy mortgages?