Fed rejects request to help credit card holders

Fed rejects request to help credit card holders

uk.reuters.com

WASHINGTON (Reuters) - The U.S. Federal Reserve rejected a request to force credit card companies to immediately halt retroactive interest-rate increases on existing balances, Democratic Senator Charles Schumer said on Tuesday.

"The Federal Reserve's failure to protect consumers from these outrageous rate increases is unconscionable," Schumer said.

"The Fed has acted swiftly to use its emergency powers to steady teetering financial institutions. It is fair to ask why they won't use the same powers to aid American families who are at just as great a risk."

(visit the link for the full news article)

"We believe that issuers must be afforded sufficient time for implementation to allow for an orderly transition process that avoids unintended consequences, compliance difficulties and potential liabilities," Bernanke wrote in a May 4 letter.

Quick, let's get the bailouts done almost overnight

Wait....... We can help out the people right now, we must be very patient


May 5th, 2009


I think transparency is very important
Why not treat the FED like credit card holders?
Have every transaction documented?

I mean seriously, why not?

uk.reuters.com
(visit the link for the full news article)

[edit on 5-5-2009 by ModernAcademia]

Why is Congress crying? They have the power to pass a law and make it effective immediately once Obama signs it. Hell they could have passed something of this sort when they passed the bankruptcy laws. Of course, we all know they chose not to.

this is why the bailouts should have never been approved. Wallstreet doesn't want to help us out, even though we just helped them to the tune of $1.5 trillion??

Ridiculous, like I've said before we should have let this whole system crash.

no no forget congress

looks what's happening

all the things that Obama had in his "Obama's first 100 days" marketing campaign accross all media outlets are being rejected.

His bid for funding to close guantanamo
and now this

was it all for marketing?
introduce it but have it rejected later on?

let's see what's to be rejected next!@\

let's see what's to be rejected next!@\

If he keeps this up, he will.

I believe we all know by now that the US government has no interest in or intention of helping its citizens.

This is the change we waited eight years for. Someone PLEASE catch me I'm fainting and falling. I'm trying to find a reason to trust the government but it's not working.

[edit on 10-04-08 by Beach Bum]

Maybe now this will teach people about the dangers of credit. Retarded borrowing and lending practices have put this economy in its current predicament so perhaps now people will learn the lessons necessary to make sure it doesn't happen again in four years.

Originally posted by Helig
Maybe now this will teach people about the dangers of credit. Retarded borrowing and lending practices have put this economy in its current predicament so perhaps now people will learn the lessons necessary to make sure it doesn't happen again in four years.

If only you could teach our government to spend and lend wisely.
Seriously it's like giving a five year old free reign in a candy store.

reply to post by Beach Bum


Unfortunately rubbing their noses in it and smacking them with a rolled up newspaper won't be nearly as effective as beating them with a live 7 foot long blacksnake...

Was there any ever doubt that the fed would side with banks?! There is a vast aray of topics here and elsewhere of the influence of big banks, the power they yeild, and how they enjoy nothing better than bending over all their customers. I would like to say that I'm outraged and disappointed but honestly I never expected to get a break to begin with.

reply to post by Helig

Wet crowbars are also effective I've found.

Come on people since when is the fed or the banks even the slightest concerned about the people that support them??

Congress is so corrupt its past the point of no return.

Passing the bailouts was the icing on the cake and frankly if the sheeple haven't figured it out yet, they aren't going to..........

I am just trying to get a place in line for the Vaseline now, because I know this is going to hurt!

The answer's very simple. Make the TARP terms identical to the Bank's credit card terms. Charge the CC customer 29.9% and late fees, pay the taxpayers 29.9% and late fees.

Zero Interest Credit Cards with no late fees in 3 days, guaranteed...

The bastards...

Anyways.. to translate Bernake's quote:

"As bank assets decreased in value from defaulting loans and negative equity mortgages, interest rates where increased to offset depreciating assets by appreciating these assets; ie. offsetting a portion of the asset collapse. To force the Banks to halt the retroactive increases in Credit Cards (this incidentally includes requesting them to stop same month double billings, roving bill dates etc) would force them to write down the assets in relation to the interest that is decreased."

that's what he meant to say.. but it sounds better when you speak in circles so no one really knows what you mean..

If the banks lower Credit Card interest rates... their Credit Card assets will be slashed by 75%. Effectively #ing the banks.

**ps you can get back at the Feds and at the Congress who are the ones who are supposed to be protecting us, not the fed, by paying off your ballances. Pay them off, cut them up, save one for an emergency. NEVER apply for another credit card again. Time to stop feeding the beastie**

reply to post by mythatsabigprobe


That is fantastic!!!!!!!! If only we could add an amendment that in the event they default on their TARP loan, the credit holders my default without penalty on their credit balances as well.

Originally posted by Helig
so perhaps now people will learn the lessons necessary to make sure it doesn't happen again in four years.

No...people will just try harder not getting into financial trouble by making more money than joe next door, regardless of how their actions affect joe next door. Unfortunately, they are always going to be someone elses joe next door.

Destroy your credit cards, cash only. If you ain't got it you can't spend it and if you can't afford it you weren't meant to have it.

Life CAN be simpler. Think of all the space you'd have without all that cr*p!

(I mean no offence to anyone called joe )

Let me get this straight . .I read somewhere today that B of A may need
an additional 34 billion dollars of bailout money.

It's institutions vs. citizens.

I want to know when the help will come for Joe Average.

I have come to despise bureaucratic BS. The double standards kill me.