Saturday, May 29, 2010

Federal Government Wont Enforce Bank Laws

(Snippets, Long Article)
Did you know that Bank of America, J.P. Morgan Chase, and Wells Fargo are currently in violation of federal banking law, but the government won't enforce that law?
  The law in question is the Riegle–Neal Interstate Banking and Branching Efficiency Act of 1994, passed by a Democratic Congress and signed by a Democratic President.

  Prior to passage of this act, banks were restricted from operating widespread, multi-state branching networks. Plus, many states had their own restrictions on banks. These restrictions dated all the way back to the National Bank Act of 1864. The result was a nation full of relatively small banks. The idea was that competitive equality was good for the industry. Local banks invested their money locally, while large banks drained funds from rural areas and directed them to large cities.
 (more)
One of the primary means for Wall Street banks to bring in revenue these days is charging fees for pretty much everything. They will haul in 38 Billion dollars on overdraft fees this year, with a median APR of 4,547%. That's enough to make a loan shark blush. They will rake in another $48 Billion from credit card swipe fees.
  The best example of predation by the banks is in the form of payday loans. The major banks have always been silent owners behind this loan shark filth that suck the life blood out of the poorest, but lately they have come out into the open.
A few of the nation's largest banks -- including Minneapolis-based U.S. Bancorp, Wells Fargo & Co. of San Francisco, and Fifth Third Bancorp of Cincinnati -- are now marketing payday loan-type products, with triple-digit interest rates, to their checking account customers.

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Would it surprise you that as recently as 1979 this sort of usury was regulated and illegal? Would it also surprise you that it was a Democratic Congress and a Democratic President that revoked those laws?

  The law in question was the Depository Institution Deregulation and Monetary Control Act of 1980. William Greider explained in his book Secrets of the Temple, "Passage of the Monetary Control Act had very little to do with how effectively the Federal Reserve could control the supply of money. It's purpose was to protect the Federal Reserve's political base."
  The law did a lot of things such as requiring banks to operate under the Federal Reserve umbrella (commercial banks were leaving the Fed at the time), gave banks more opportunities to merge and consolidate, raised deposit insurance levels, and, oh yeah, allowed S&L's to speculate in commercial real estate. But it also did one other thing that seems very relevant today.
Eliminates State mortgage usury ceilings and restrictions on discount points, finance charges and other charges...
The most important part of the Glass-Steagall regulation of the New Deal was Regulation Q. This law regulated the amount of interest and fees that banks could charge for over 47 years.
  The Monetary Control Act gutted Regulation Q, and all state usury laws were unilaterally suspended. The law was a political trade-off. The Federal Reserve became stronger at the banks expense, but the banks endorsed the law because they got the most prized gift of all - a free pass to prey on the most vulnerable in American society, and they got a multi-billion dollar tax cut to boot.
  It seems rather ironic that the give-aways to the wealthy that Reagan and the Republicans of the 1980's were famous for started entirely with the Democrats.

"I think we will look back in 10 years' time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930's is true in 2010. I wasn't around during the 1930's or the debate over Glass-Steagall. But I was here in the early 1980's when it was decided to allow the expansion of savings and loans. We have now decided in the name of modernization to forget the lessons of the past, of safety and of soundness."
  - - Senator Byron L. Dorgan, Democrat of North Dakota, 1999

"The concerns that we will have a meltdown like 1929 are dramatically overblown."
  - Senator Bob Kerrey, Democrat of Nebraska, 1999

  Much ink has been spilled over the demise of Glass-Steagall in 1999. In fact many of the ills that plague the financial world today go back further and are not being discussed today. Reviving Regulation Q would be the most moral and Christian act we could do today, but it is not being discussed. Rolling back the Riegle-Neal Act would permanently fix the problem of banks being "Too Big To Fail", and thus saving the taxpayer of ever having to do another disastrous bailout of these crooks.
  In the meantime, even before any reforms are voted on, it would be nice if the government would simply enforce the laws already in place, such as the 10 percent cap rule.
More Here..

11 comments:

  1. the banksters have captured the government. why do u think we have so many lobbyists?

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  2. This guy needs to get lost.

    He wants to enforce more laws and he's pro cap and trade. What a loser.

    He is very much like a typical Democrat. Reagan created the most prosperous era in American history (while FDR only halted American recovery), he cleaned up the shit Carter made and allowed Americans to work, pursue ambitions, and everyone benefited from it rich or poor. What these Ivory League shit-brains like doing is saying the glory of Reagan was due in part to previous administrations and Reagan is responsible for the problems today.

    Yeah I see that kind of logic. If I came into a house which was an utter mess and cleaned it all up, the house became clean because the person who left it a mess - cleaned it up??? No I cleaned it up!

    If that person leaves the house after cleaning it up from the person who left it a shithole, then the next person comes in while the other one is gone and turns it into a mess, then it must be because the person who left it clean somehow... made the messes that new person made?

    Ahh, analogies, a wondrous miracle of the human psyche and key component to plausible reasoning.

    Fuck this guy and anyone who is intellectually deprived enough to have to take Reagan's competence away just so their entire existence can be centered around their unconsciously manifested and as a result mandatory constant of nature (world view that has become a brain tic, to make it worse is utterly false) that democrats did x and republicans caused y while democrats used z...

    What a fruitloop. This is the kind of stooge that should be on Hardball.

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  3. There's no doubt, the banks rape the people.

    When Jesus reigns for 1,000 years, goodbye paper money.

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  4. Zinn addressed this mechanism in Chapter 21 of A People's History of the United States.

    http://www.historyisaweapon.com/defcon1/zinncarebu21.html

    He labeled it the Bipartisan Consensus. They're all working for the same owners, they're just wearing slightly different shades of lipstick.

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  5. This is the first article I've seen exposing it was Carter who de-reg'd the banks. I remember it as such, yet every article told me it was Reagan. I won't ever doubt myself again when it comes to history I've lived.

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  6. 11:51 obviously still doesn't get it. Carter didn't do anything, nor did Reagan, Bush Sr., Clinton, Bush Jr. and now Obama. The only thing any of them do, and it's the same thing regardless of whether they're wearing Democratic or Republican lipstick, is take their marching orders.

    Look behind the curtain and quit pretending they don't serve the same masters.

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  7. 10:24 thanks for the laugh I needed that.

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  8. Exactly 12:04. Sheeple can't accept that US president is a nobody. Just a stage actor. They make absolutely NO DECISIONS. Bush did this, Carter did that, NO; they did NOTHING. All they did is repeat what the Oligarch owners of this country tell them to do.

    Here, Obama perpetuates the wars, installs all the banksters into top positions in government, empowers the Fed - WHY? Because he is a minion, a puppet. A nobody folks.

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  9. Vote everyone In officew OUT ASAP. Fresh start. Starting salary 32,500 year with a CAP. If your caught taking kickbacks or bribes, you get hung from a street lamp.

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  10. This article claims:“Reviving Regulation Q would be the most moral and Christian act we could do today, but it is not being discussed“Glass Steagal regulation Etc.
    "More free Money for banksters" says"
    These restriction on the financial markets and usury rates proposed, are In fact Anti-Christian probably Muslim Jihadi propaganda. An attempt to terrorise and “regulate” free enterprise banking and the natural operation of the free markets and an attack on the established American “ Judao -Christian” morality in the financial world and the capitalist way of life. A call to impose Muslim type Sharia laws and anti- Usury economics on the free world.This kind of Anti-Usury religious propaganda has long since been abandoned by the modern Christian Churches since the rise of Protestantism and Capitalism. It died with the death of that anti-Usury Protestant raver Martin Luthor himself ,as it was proved irrelevant to everyday business practice after a few long wars in Europe settled the matter against Feudalists in favor of modern capitalism .
    Muslim Utopian Fundamentalism .
    For a start this anti-usury propaganda implies that the Dollar Hegemony In world Finance and trade are the financial operations of Great Satan itself. Slandering the actual life process of everyday American business and bankers doing ‘Gods Work .
    It is -anti-liberalism-Anti Christian Fundamentalist Muslim religion utopian economics ,because it fails to differentiate between theory and practice. The pure brotherly love in the theoretical, theological ,moral economics of Sunday Christians guided by Adam Smith and the practical everyday Christian business life ,or
    between the practice of the religious Sabbath Jew and the everyday business Jew in the glorious search for profits in the “natural” god given free trade economy loved by all Christian Americans . As embedded in the US constitution ,That great practical constitution was inspired by the “Supreme Deity” of Usury and Property Right himself as the “Rights Of Man” and therefore had nothing to say about “bad Usury.”
    It is well known that prior to the Global Finance Crisis that the creation and management of debt and the fees for handling those debt accounts provided 40% of all US profits and therefore about 40% of the value of shares on the stock market. The recovery of the American economy is dependant on restoring at least that 40% of profit from debt issuance to the banksters and finance industry and growth in dividends . Recovery of today’s Casino capitalism economy will only be achieved by the finance capitalists extending more debt at even higher usury rates so as to collect more profit and transaction fees from turnover fees .
    This share of the Economy going to finance capital sector and “growth” and prosperity in America will be best achieved and is dependent on, increasing the share to capital from debt incomes from the old 40% to say 60%.
    Luckily Ben is on the productivity job , printing paper, and recovery and growth on paper profits is assured and on track.
    We don’t need Muslim anti-usury Communist style economics for a "Free " Trade AMERICAN CHRISTIAN economy recovery.

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  11. 6:59 Voting is a waste of your time. The game is rigged and so are the voting machines.

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