… in the Star-Telegram, moderate House Democrats are drafting a proposal that would shield big banks from potentially tougher state regulations of credit cards, mortgages and savings accounts.

The article said:

“…their proposal, spearheaded by Illinois Democratic Rep. Melissa Bean, isn’t sitting well with consumer advocates who say banks shouldn’t be allowed to skirt state regulations if the restrictions don’t suit them.”

Under the plan created by President Obama and …

Permalink: /credit-crisis/state-legislators-seek-to-shield-banks-from-tough-credit-card-rules/

According to an article in the Star-Telegram, banks that are losing profits because of the new credit card legislation are now looking to debit cards and bank accounts to make up the difference.  The recently passed credit card legislation requires that banks give customers a choice on whether they want to opt into over-draft programs that can be costly.

The article said:

“That law only applies to credit cards, but lawmakers are now …

Permalink: /credit_card_negotiation/feeling-stiffed-on-credit-card-fees-banks-eye-debit-cards/

… in Reuters, the U.S. House of Representatives approved legislation last week that would cut major banks and student loan giant Sallie Mae out of a large slice of the $92 billion university student loan business if passed by the Senate.  Under the bill H.R. 3221 –the Student Aid and Fiscal Responsibility Act of 2009, all new student loans would originate with the Direct Student Loan Program as of July 1, 2010. Many big banks and their supporters are lobbying hard to crush the legislation …

Permalink: /student-loans/big-banks-may-be-locked-out-of-student-loan-subsidies/

… an article in the Star-Telegram, despite the growing foreclosure crisis, the nation’s largest banks such as Goldman Sachs and JPMorgan Chase have not changed their reckless behavior.  Many of the banks who have received tens of billions of dollars in federal bailout money are still up to their old tricks and risky investments.

The article said:

“That Wall Street is making money again in essentially the same ways that thrust the banking system into chaos last fall is reason for …

Permalink: /breaking-news/as-foreclosure-crisis-worsens-banks-take-bigger-risks/

… have filled out an application for credit with a bank recently you’ve probably noticed that the banks have made a little change to their bankruptcy question.  Before, banks would ask potential customers if they had filed bankruptcy within the past 10 years. Now, banks are asking potential customers if they have “ever” filed bankruptcy.  Should this be allowed?

After 10 years a bankruptcy is wiped off of the debtor’s credit report–and for good reason.  No one should need to …

Permalink: /dallas_bankruptcy/banks-are-sticking-their-noses-where-they-dont-belong/

According to an article in the Daily Finance, the amount of profits banks are earning from overdraft fees has nearly doubled since 2000 reaching a record $38.5 billion. The average bank overdraft fee rose from $25 to $26 for the first time in over 40 years, causing some consumers more trouble than their high interest credit cards. And many consumer advocates say, that’s exactly the point of increased overdraft fees on consumer bank accounts. Many consumer …

Permalink: /credit_bankruptcy/banks-lose-on-credit-cards-but-rake-in-billions-on-overdraft-fees/

… in the Dallas Morning News, the Obama administration has unveiled a new program to purchase banks’ “bad assets” which will include toxic mortgages. The “bad assets” shopping spree will require $75 billion – $100 billion which will be taken from the existing $700 billion bailout program as well as private investors and the Federal Deposit Insurance Corp.

The article said:

Obama called it “one more critical element” in a multi-pronged effort to revive the economy …

Permalink: /breaking-news/government-to-buy-banks-bad-assets/

According to an article in the Dallas Morning News a handful of banks are responsible for as much as 40 percent of all the home foreclosures in the Dallas- Fort Worth area in 2008.

The article said:

Two financial firms – Wells Fargo and Deutsche Bank – were responsible for about a quarter of the residential foreclosure filings, according to a study of residential property foreclosure sales in 2008. Other major U.S. lenders, including U.S. …

Permalink: /foreclosures/40-percent-of-foreclosures-handled-by-a-few-banks/

According to an article in the Star-Telegram, 20 of the largest banks receiving government bail out funds slightly reduced their lending to consumers and businesses in the last three months of 2008.

The article said: The Treasury Department said the banks reduced their mortgage and business loans by a median of 1 percent each, while credit-card lending rose by a median of 2 percent. The median is the point halfway between the banks that lent the most …

Permalink: /breaking-news/bailed-out-banks-reduce-lending/

… thwarts their ability to quickly pump billions of bailout dollars into the ailing economy.

Banks say they are caught in a frustrating Catch-22: How can they make more loans when creditworthy borrowers are scarce, their balance sheets are saddled with bad debt, and regulators are hounding them to horde cash?

Are you kidding me? Basically these banks, many of which faced bankruptcy without government intervention are now claiming that holding money in reserve and scrutinizing …

Permalink: /bankruptcy/banks-complain-government-stifling-their-efforts-to-boost-the-economy/

The FDIC are asking banks who received bail out funds to monitor how they are using money received from the $700 billion recovery fund.

According to an article at Associated Press :

"Banks are expected to document how they are continuing to meet the credit needs of creditworthy borrowers," the directive says. "The FDIC expects that … (institutions) will deploy funding received from these …

Permalink: /foreclosures/bailed-out-banks-being-held-accountable-well-maybe/

… but with the frozen credit markets are finding it nearly impossible. This is bad news for banks, pension funds, insurance companies, hedge funds and other entities that were sold securities that included these commercial mortgage loans. Could we be seeing more foreclosures in the commercial real estate market? Unfortunately, it may be inevitable as the turbulence in the economy has a ripple effect throughout all industries. What about more bankruptcies hitting the financial …

Permalink: /bankruptcy/commercial-real-estate-ticking-time-bomb-for-banks/