Bailed - Out Banks Face Probe Over Fee Hikes: Report

[dbackjon]

U.S. banks that received money under the Troubled Asset Relief Program (TARP) are facing a probe over increases in rates and fees, the Wall Street Journal said. The Congressional Oversight Panel, the body named by Congress to oversee the federal bailout, is working on a report examining instances of potentially inappropriate lending by banks that got taxpayer capital, according to the paper.

"The people who are subsidizing the activities of the banks through their tax dollars are the same people who are furnishing the high profits through consumer lending," Elizabeth Warren, chairwoman of the Congressional Oversight Panel told the Journal in an interview.

"In a sense, we're asking taxpayers to pay twice," Warren told the paper.

The U.S. Treasury Department's $700 billion TARP was intended to provide lenders with more capital to spur lending and improve the economy.

Since TARP was launched in October, banks bolstered by capital infusions have boosted charges on a wide range of routine transactions, hiked rates on credit cards and continued making loans criticized as predatory by consumer advocates, the Journal said.

http://www.nytimes.com/reuters/2009/04/ ... .html?_r=1

[OL FU]

Just take them over and give us all interest free loans and no ATM charges

[AZGrizFan]

Here's a little economics lesson for you, Jon. If they needed a CAPITAL injection, that means they're running low on EARNINGS. The only way to build CAPITAL is to increase EARNINGS. And the only way to ever pay back the TARP money is to increase EARNINGS. Unlike the government, banks can't just print this shit in a basement.

The quickest way to return banks to profitability: Have people start paying their fucking bills.

[dbackjon]

Here's a little economics lesson for you, Jon. If they needed a CAPITAL injection, that means they're running low on EARNINGS. The only way to build CAPITAL is to increase EARNINGS. And the only way to ever pay back the TARP money is to increase EARNINGS. Unlike the government, banks can't just print this shit in a basement.

The quickest way to return banks to profitability: Have people start paying their f**k[*] bills.

I understand economics...

[AZGrizFan]

Here's a little economics lesson for you, Jon. If they needed a CAPITAL injection, that means they're running low on EARNINGS. The only way to build CAPITAL is to increase EARNINGS. And the only way to ever pay back the TARP money is to increase EARNINGS. Unlike the government, banks can't just print this shit in a basement.

The quickest way to return banks to profitability: Have people start paying their f**k[*] bills.

I understand economics...

Apparently the Congressional Oversight Committee doesn't...

[dbackjon]

I understand economics...

Apparently the Congressional Oversight Committee doesn't...

I think the Committee was hoping they would cut expenses (bonuses, exec compensation FIRST).

Ends up the little guy gets double screwed - higher fees, bigger national debt

[AZGrizFan]

Apparently the Congressional Oversight Committee doesn't...

I think the Committee was hoping they would cut expenses (bonuses, exec compensation FIRST).

Ends up the little guy gets double screwed - higher fees, bigger national debt

I think most banks HAVE....I know WE have, and we didn't even GET TARP money. But a lot of expenses are fixed, and there ain't a damned thing you can do about them.

[OL FU]

Apparently the Congressional Oversight Committee doesn't...

I think the Committee was hoping they would cut expenses (bonuses, exec compensation FIRST).

Ends up the little guy gets double screwed - higher fees, bigger national debt

They could change banks

[dbackjon]

I think the Committee was hoping they would cut expenses (bonuses, exec compensation FIRST).

Ends up the little guy gets double screwed - higher fees, bigger national debt

They could change banks

Indeed - or at least threaten to, which I did, and got fees waived

[AZGrizFan]

I think the Committee was hoping they would cut expenses (bonuses, exec compensation FIRST).

Ends up the little guy gets double screwed - higher fees, bigger national debt

They could change banks

Yep. Just go to their local credit union!

[dbackjon]

They could change banks

Yep. Just go to their local credit union!

And look for the label, the union label!!

[AZGrizFan]

Yep. Just go to their local credit union!

And look for the label, the union label!!

[ASUMountaineer]

Yep. Just go to their local credit union!

And look for the label, the union label!!

Oh snap.

[AZGrizFan]

And look for the label, the union label!!

Oh snap.

Believe me, I've got to bite my tongue on the whole "union" issue now. Probably 80% of my new Credit Union members belong to one of the airline unions...