J
% Historic Financial Reform Moving Through Congress - AARP Bulletin
visibility
137 views
thumb_up
16 likes
L
“It’s a turning point in our economic history,” said Heather Booth, executive director of Americans for Financial Reform, a coalition of progressive advocacy groups. “It ensures the financial system operates to support needs of working families, promotes business growth and economic mobility rather than the interests of the speculators who view the economy as a huge casino,” Booth said.
thumb_up
17 likes
A
Opponents, primarily Republicans, disagree. The Obama administration is using the financial crisis as pretext to “expand the cost and size and reach of government,” said Sen. Minority Leader Mitch McConnell, R-Ky.
thumb_up
16 likes
L
“It punished Main Street for the sins of Wall Street.” Senate passage of the measure marks the second significant legislative victory for the Obama administration after health care reform. Obama pledged to empower government regulators to build more transparency and accountability into the American marketplace.
thumb_up
31 likes
M
A law by July 4? The Senate bill must now be reconciled, however, with a similar bill passed by the House of Representatives in December, before the president can sign it into law.
thumb_up
7 likes
L
And both advocates and opponents of the bill urged that the negotiations process, to be led by Rep. Barney Frank, D-Mass., be open to public scrutiny. Frank says he hopes to have negotiations completed and the bill on Obama’s desk before July 4.
thumb_up
42 likes
S
“The battle now moves to conference where the big banks will look to weaken or kill the bill behind closed doors,” Booth said. “We cannot and will not allow this to happen. And we need to fight the big bank interests to strengthen the bill in conference.” In some significant ways, the Senate bill, which passed with the support of four Republicans, offers stronger protections than does the House bill.
thumb_up
15 likes
D
That may reflect fundamental shifts in the national mood and increasing anger among the public toward events of the past few months: Goldman Sachs, the giant investment bank, was indicted on fraud charges by the Securities and Exchange Commission; former Federal Reserve Chairman Paul Volcker urged banks to be stripped of their power to make “proprietary” trades that don’t benefit their clients; the euro collapsed after Greece faced fiscal insolvency; and the stock market dropped 10 percent this month. Consumer advocates say the legislation will provide more effective protections for Americans.
thumb_up
48 likes
M
“If we didn’t get the whole pie, we certainly got three-quarters,” said Mary Wallace, a senior legislative representative for AARP. As House and Senate conferees gear up to negotiate final legislation, here are some key areas to watch: Credit cards.
thumb_up
15 likes
D
An amendment to the Senate bill permits the Federal Reserve to impose rules ensuring that credit card companies don’t charge more than is reasonable to process debit and credit card charges. Right now, Visa and MasterCard issuers often charge retailers 1 or 2 percent of the bill, far more than it actually costs them to carry out the electronic transfers.
thumb_up
40 likes
J
The bill would allow retailers to offer discounts to customers who pay by cash, check or debit card, rather than by credit card, and would permit merchants to set minimum-purchase amounts for use of cards. So if you pay cash or check for a new TV set or barbecue grill, you might end up paying less than if you used your credit card.
thumb_up
40 likes
S
Sen. Dick Durbin, D-Ill., the sponsor of the successful amendment, argued that controls on fees were needed because the biggest credit card firms, which include Visa and MasterCard, control 80 percent of the credit and debit market, allowing them to charge high fees for their services.
thumb_up
41 likes
J
But bank analysts suggest that if the new rules become law, banks might end up raising the fees they charge for using credit cards, or severely restrict the use of free checking accounts to make up for lost revenue from credit card fees. The House bill contains no such restrictions on fees, though a new financial protection agency would have the power to regulate credit card practices. The differences will have to be ironed out.
thumb_up
31 likes
J
Credit scores. If you’ve ever been turned down for a department store credit card or a consumer loan, you quickly learn that the , the number, usually between 300 and 850, that lenders use to judge your likelihood to pay back a loan. Right now, getting that score from one of the major credit-reporting bureaus typically costs about $15.
thumb_up
49 likes
V
That will change if the Senate gets its way. Its new bill contains a proposal by Sen.
thumb_up
38 likes
L
Mark Udall, D-Colo., that requires that you get your score for free if it was used to deny you credit, it required you to pay a higher interest rate on a loan, or it prevented you from being hired for a job. “This I believe will empower consumers, it will increase the financial literacy in our country,” Udall said. “It’s a win-win.” This measure is also not contained in the House bill.
thumb_up
45 likes
D
Consumer protection. Both the House and the Senate bills call for creation of a watchdog agency. The Senate’s new consumer financial protection bureau would be housed in the Federal Reserve, but with almost total independence from it.
thumb_up
1 likes
L
The bureau would take over responsibilities now spread across seven agencies to oversee financial products that are offered to consumers.
It also would limit the ability of mortgage lenders to assess penalties on borrowers who pay off their loans early and prohibit paying brokers and loan officers more to steer borrowers to higher interest rates or certain risky features.
It also would limit the ability of mortgage lenders to assess penalties on borrowers who pay off their loans early and prohibit paying brokers and loan officers more to steer borrowers to higher interest rates or certain risky features.
thumb_up
1 likes
J
Instead, a broker’s commission would be based on the size or number of loans originated. The House bill, in contrast, proposes an independent consumer protection agency, with more latitude to implement regulations— and it would exempt auto dealers who offer their customers financing.
thumb_up
45 likes
A
Monday night, the Senate voted for the same exemption, despite President Obama’s opposition. Such an exclusion, he said, was a loophole that could allow dealers to “inflate rates, insert hidden fees into the fine print of paperwork and include expensive add-ons that catch purchasers by surprise.” Derivatives.
thumb_up
39 likes
I
Both bills require derivatives—complex instruments that bet on the future of underlying assets—to be traded and insured through so-called third-party clearinghouses. The intent is to increase transparency for such trades, which contributed so significantly to the mortgage meltdown.
thumb_up
5 likes
C
But the Senate bill goes further by making it more difficult for companies to be exempt from the new rules. There’s also a Senate bill provision, sponsored by Sen. Blanche Lincoln, D-Ark., that could force big banks to spin off their derivatives trading operations.
thumb_up
8 likes
J
The House bill doesn’t have this provision. The Fed, the Federal Deposit Insurance Corporation and the Treasury, as well as the banking industry, have argued against Lincoln’s amendment, and it faces a tough fight.
thumb_up
38 likes
E
The Volcker rule. The Senate bill instructs regulators to study how best to force banks out of trading for their own accounts—so-called proprietary trading—and make them sell their interests in hedge funds and private equity firms.
thumb_up
22 likes
B
It would also bar any financial institution from acquiring other firms that effectively allow them to grow larger than 10 percent of U.S. financial liabilities.
The House bill was completed in December before Paul Volcker, the former Federal Reserve chairman, offered up his proposal to keep banks from proprietary trades.
The House bill was completed in December before Paul Volcker, the former Federal Reserve chairman, offered up his proposal to keep banks from proprietary trades.
thumb_up
44 likes
A
So none of that language appears in the House bill. However, the House measure does create a financial stability oversight council that can break up a financial institution if it threatens the larger system and would create a $150 billion fund, financed by big financial companies, to unwind failed firms in an orderly way. The intent is to prevent taxpayers from having to pay the tab.
thumb_up
20 likes
I
Fiduciary rules. Consumer advocates, as well as AARP, had hoped to get the Senate bill to tighten regulations for broker-dealers who give investment advice, so that they would have an obligation, just as financial planners do, to tell you about products which best suit your investment goals. Such restrictions appear in the House bill.
thumb_up
23 likes
W
The language never got to the Senate floor, but advocates are hoping the conference might add it anyway. As it stands, the Senate bill directs the SEC to study the differences between fiduciary standards for investment advisers and broker dealers and make recommendations.
thumb_up
32 likes
N
Michael Zielenziger writes on the economy for the AARP Bulletin. He lives in the San Francisco Bay area. Cancel You are leaving AARP.org and going to the website of our trusted provider.
thumb_up
24 likes
A
The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
thumb_up
44 likes
L
Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age.
thumb_up
34 likes
B
You can also by updating your account at anytime. You will be asked to register or log in.
thumb_up
40 likes
S
Cancel Offer Details Disclosures
Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering.
thumb_up
36 likes
O
In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.
thumb_up
3 likes
Similar Discussions
-
Twitter explodes following AEW star CM Punk s surprising spot in the PWI500
-
I had the longest conversations with him on the entire first day New Manchester United signing says Cristiano Ronaldo was the first player to personally welcome him to the club
-
Teddy Gentry net worth Alabama founding member s fortune explored as he s arrested on drug charges
-
What is the Fat Leonard scandal? Corruption scheme explained as mastermind escapes from San Diego house arrest
-
M3 APK Download for Android
-
Where is Rick and Morty this week? Dexerto
-
Creep Stalks Model And Watches Her Sleep In Bed At Night So She Sets Up A Booby Trap For Him And Shares The Creepy Footage
-
Brother Daytrotter Session Jun 9 2011 Free Streaming
-
How to Change the Google Maps Navigation Voice
-
How to Fix Msimg32 dll Not Found or Missing Errors
-
How to Tag Someone on Instagram
-
How to watch Dancing with the Stars 2022 with Disney Plus right now mdash Season 31 start date and time Tom s Guide
-
Battlenet Issues
-
Tomasi Research Lab Cedars Sinai
-
Chelsea star planning travel to seal move on Wednesday reports
-
5 facts about Dendro elemental reactions in Genshin Impact
-
Seattle Mariners vs San Diego Padres MLB Odds Pick Prediction and Preview September 13 2022 MLB Season
-
Reasons why Goldberg shouldn t and should return to WWE
-
How to set up a turntable Tom s Guide
-
Apple may be preparing to take over a whole new market TechRadar
-
The 10 Best Beach Cruiser Bikes of 2022 From Experts
-
Leucine Foods and Leucine Supplements A Complete Guide
-
When Is the Best Time to Take Vitamins
-
This Massive Video Game Bundle Is Being Sold to Support Ukraine
-
One pot wonders Why pots are the perfect way to zhoosh up your outdoor space YOU Magazine
-
A fashionista s road trip On location in the Cotswolds with the YOU team YOU Magazine
-
24 Jokes About Work That Will Always Be Way Too Real
-
The M amp S pea coat for autumn that Holly Willoughby already loves
-
Klavyede santigrat derece işareti
-
Condition zero game free download for pc