FUEGO
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 13, 2007
- Messages
- 7,750
Breaking news from the congressional TARP oversight committee:
Banks Take TARP Funds, Raise Consumer Fees: So Whats the Problem?: Tech Ticker, Yahoo! Finance
Elizabeth Warren is at it again. Busting on banks for increasing fees and interest rates when that is the exact thing that is making them more profitable. And the exact thing that will allow them to return TARP money and get off the government dole.
Raising fees is strictly a bottom line profit enhancing move. But increasing interest rates on credit cards from 11% to 12% (per the linked article) is probably a move designed to better compensate the CC companies for all the extra risk now involved with CC lending that was incorrectly priced in years past. It hardly seems like raising rates by a percent on average could be perceived as predatory lending as Ms. Warren asserts.
Either nationalize those banks and run them for the public welfare, or treat them as borrowers and give them some leeway to return to profitability and get we, the people's money returned to the federal coffers as soon as possible.
Banks Take TARP Funds, Raise Consumer Fees: So Whats the Problem?: Tech Ticker, Yahoo! Finance
Elizabeth Warren is at it again. Busting on banks for increasing fees and interest rates when that is the exact thing that is making them more profitable. And the exact thing that will allow them to return TARP money and get off the government dole.
Raising fees is strictly a bottom line profit enhancing move. But increasing interest rates on credit cards from 11% to 12% (per the linked article) is probably a move designed to better compensate the CC companies for all the extra risk now involved with CC lending that was incorrectly priced in years past. It hardly seems like raising rates by a percent on average could be perceived as predatory lending as Ms. Warren asserts.
Either nationalize those banks and run them for the public welfare, or treat them as borrowers and give them some leeway to return to profitability and get we, the people's money returned to the federal coffers as soon as possible.