Ed's Blog

Time to break up the big banks?

By | Ed Mierzwinski
Consumer Program Director

"Too big to fail, too big to jail." For far too long, that's been the government's attitude toward Wall Street banks. Regulators refuse to hold banks accountable both out of fear of Wall Street's political clout and also a misplaced perception that real enforcement might hurt the economy, even though a lack of enforcement recently wrecked it. But things are changing.

Senators Hold CFPB Director Hostage, Roil Markets

By | Ed Mierzwinski
Consumer Program Director

On Friday, most Senate Republicans again sent the President a letter saying they would not confirm Richard Cordray to a full term as CFPB director unless the agency's powers and independence were first gutted. Their intransigence contributes to market uncertainty that ignores at least three things: The CFPB is here to stay; the public wants the CFPB; and, banks lose to payday lenders if the director is not confirmed.

Will Consumers Face Credit Card Surcharges? No.

By | Ed Mierzwinski
Consumer Program Director

On behalf of the big banks, the credit card companies Visa and Mastercard charge unfair fees to merchants. Some are speculating that as a result of a court settlement over these "swipe fees" that consumers will end up paying more when they make a credit card purchase. We don't think surcharging will spread. Here's why.

In the past week, two leading Fed officials issued stark warnings against risky practices of the big banks and called for greater oversight. Both Professor Alan Blinder, a former vice-chair of the Federal Reserve, and Richard Fisher, the current Dallas Fed president, called for solutions that match U.S. PIRG's reform platform.

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