Bernanke Airs Concern on Speeding Up Credit-Card Law

[PinkOwl]

Source: Bloomberg News

Oct. 21 (Bloomberg) -- Speeding up the effective date of new credit-card rules to Dec. 1 from next year may result in “unintended consequences” for banks, said Federal Reserve Chairman Ben Bernanke.

“Issuers must be afforded sufficient time for implementation to allow for an orderly transition and to avoid unintended consequences, compliance difficulties and potential liabilities,” Bernanke said in an Oct. 20 letter to Spencer Bachus of Alabama, the top-ranking Republican on the House Financial Services Committee.

The credit-card law due to take full effect by next year would limit the ability of banks to raise interest rates and ban practices such as “universal default,” or raising interest rates based on a missed payment with another lender. Barney Frank, the Massachusetts Democrat who heads the House panel, has said he wants to move up the start date of provisions in the Credit Card Accountability Responsibility and Disclosure Act.

Bernanke’s comments echoed concern expressed by Discover Financial Services Chief Executive Officer David Nelms, who said in an interview last month that credit-card issuers may not be ready if Frank succeeds in pushing up the start date.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aTp409172T_k

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I'm pretty sure Bernanke is filty-rich enough to go without a credit card. The issue doesn't affect his pocket. He's not the one having his interest rates raised for no reason.

[joeycola]

1. crying for the big banks once again.

[roguevalley]

14. bernanke, banker speak for cockroach

[dixiegrrrrl]

2. Strange...banks seem to be able to raise the rates overnight

without worrying about "un-intended consequences" or resultant "financial difficulties".

Does give us a clear wide-eyed picture of who Bernanke works for, tho.
Bernanke, whom Obama just re-appointed.

[laughingliberal]

20. Perfectly put! nt

[StreetKnowledge]

3. Bernanke is another financial industry tool.

Of course he's gonna defend his people. What else is new?

[havocmom]

4. Fire the shill

And do some auditing to see if he is more than just a shill

[woodsprite]

5. The banks are pissed because they're afraid they'll run out of time

to gouge their customers. I told hubby that's why all this is going down now. Because after the law takes effect, they won't be able to screw us over so easily.

[Roland99]

6. Fuck the banks! And, dare I say it...

Fuck Obama for keeping this criminal at the Fed and for bringing in Geithner!!

Banks are paying out tens of billions in new bonuses but yet we, the taxpayer, are on the hook for those bonuses. How about they repay the TARP funds and give up their stock options and bonuses ENTIRELY until all funds are repaid, with interest!

[change_notfinetuning]

7. But how do you really feel? n/t

[mbperrin]

8. Yes, I really hate my tax money being used by banks because I have

not banked in 30 years.

Feels good.

But now those bastards are in MY wallet!

[Tansy_Gold]

11. A man after my own heart!

:yourock:

[Roland99]

19. .

Hi, Tansy!

:hi:

[Tansy_Gold]

21. Do you have any idea how difficult it is to......

....click on a subject line that is just . ?

:hi:

[Roland99]

23. Hey, it has an underline there!

:)

[change_notfinetuning]

9. I wish all Americans would find a fiscally sound, locally owned bank

where they live, and they are out there, and take all of their money out of the national, too-big-to-fail banks that control everything, including you, Main Street and the politicians. Then, put that money in the local bank. If enough of us do this, Americans might be surprised by what working together can accomplish. There truly is strength in numbers.

Just for good measure/personal satisfaction, on your withdrawal slip or check that withdraws the balance, draw a hand giving the finger, because that's what they do to us every day.

[Winterblues]

10. Record Profits definitely call for raising rates..

Record Profits....Record Profits...Record Profits...

[SpartanDem]

12. Yet, the Fed wonders why it's being stripped of it consumer protection duties

[UpInArms]

13. but ... when the banksters want to raise your interest rate or

change the terms of your account, it's without notice and immediate - and I don't recall Bernanke coming out against "sudden" changes for consumers.

:ispitonthispieceofshit:

[DebbieCDC]

15. I am so fucking sick of all this crying for the gawd damned banks that I could scream

When is ANYONE in this fucking government goving to show some concern for middle class America?????

[truebrit71]

16. Concerned about what? Not enough to time to fuck every single person that has a card?

And Barney Frank is not guilt-free in this either...that law should have gone into effect the day after it was signed...

[ozymandius]

17. Fuck him.

Ever any concern over consumers getting fucked by the banks? Any concern over banks drying up credit lines with reliable customers?

Rhetorical questions, all.

[Tansy_Gold]

22. such language!!!

I like it. I like it. :evilgrin:



:hi:



TG

[Vidar]

18. Credit unions for all & confiscate all bank assets.

[unkachuck]

24. "Issuers must be afforded sufficient time..."

....to find new charges, fees and crooked schemes to compensate for the new credit card rules?

"unintended consequences"?? hey benie, are you worried about the American people not getting fucked properly? You, geither and summers, some of the founding fathers of our economic meltdown, should suffer 'unintended consequences', like long prison terms or the gallows....

....listening to you benie, talking about banking and finance, is like listening to colin powel on Iraqi WMD; interesting but not credible....

....what is credible, is that we must throw the plastic AWAY!