Updates

At a news conference in NYC today, Director Richard Cordray of the new Consumer Financial Protection Bureau (CFPB) will announce a major investigation of bank overdraft fee practices and propose a model "penalty box" disclosure to appear on bank statements. The investigation could end the $39 latte-- $4 bucks for the coffee, $35 for the debit card overdraft fee.

Report | U.S. PIRG Education Fund, Demos | Democracy

Business Contributions to Super PACs

Contrary to the Supreme Court’s Citizens United ruling, for-profit businesses should not be permitted to spend treasury funds to influence elections. First, most businesses are constrained to participate only to maximize private profit, rather than out of regard for the public good. More important, this spending undermines political equality by allowing wealthy institutions to translate economic success into political power.

Yet, Super PACs have provided a convenient avenue through which more than 500 for-profit businesses have contributed $31 million, accounting for 17% of total itemized Super PAC fundraising since their inception. For the year 2011, businesses contributed $17 million, for 18% of total itemized Super PAC fundraising.

This appendix provides a detailed look at business funding for Super PACs: top business donors, Super PACs which received the most business money, and amount and number of contributions by state.

Consumer news update, some stories I've been following

By | Ed Mierzwinski
Consumer Program Director

Just a summary of some of what I think are the important consumer news stories of the last week or so, in case you missed any of them.

Rep. Keith Ellison: Opposing the CFPB is "nonsense"

By | Ed Mierzwinski
Consumer Program Director

In less than two minutes, U.S. Rep. Keith Ellison gives a detailed history of the financial crisis and an impassioned defense of the CFPB, calling claims of its Congressional detractors "nonsense." Youtube excerpt from his opening statement at yesterday's House Financial Services Committee's oversight subcommittee hearing on the Consumer Financial Protection Bureau's budget. Ellison: "If your business model is not about bilking consumers,  you have nothing to worry about from the CFPB. But..."

Food Scare from Eggs Continues

By | Nasima Hossain
Public Health Advocate

A similar recall of over 2,800 chicken salad sandwiches in North Carolina, South Carolina, and Virginia may also be contaminated with listeria from eggs.

CFPB's Cordray testifies today in House FSC

By | Ed Mierzwinski
Consumer Program Director

Consumer Financial Protection Bureau director Rich Cordray -- recess appointed by the president on January 4, continues his regular appearances before the Congress by testifying on the CFPB's budget (his written testimony (88 pages))  today before the House Financial Services Committee's oversight subcommittee at 10am Eastern. It should be webcast live at that link. Nearly all majority members of FSC oppose the CFPB's independent budget, even though all other bank regulators also have an independent budget, so we will see how it goes today.

Last night, U.S. PIRG and the AFL-CIO joined Americans for Financial Reform in a detailed comment letter urging issuance of a strong Volcker rule. It's a 72-page pdf comment letter that basically comes down to this: We tell the financial regulators: don’t let big banks make taxpayer-backed bets.

CFPB To Visit NYC and More Consumer News of the Week, In Case You Missed It

By | Ed Mierzwinski
Consumer Program Director

Just a few of the interesting consumer stories I am following this week: CFPB heads to New York to talk about checking accounts (Feb. 22)... Meanwhile, Citibank charged some consumers twice to pay bills only once (NYTimes)...Consumer groups call for a real recall of Bumbo baby seat (Boston Globe)...Mortgage settlement is a good first step (PIRG statement)...House opponents ratchet up attacks on new CFPB (WashPost)...Over-priced "Who will pay your credit card if you die, get sick or get laid off?" products pay out only 21 cents on the dollar (American Banker)...More on the CFPB's latest semi-annual report (St. Louis American)...PIRG, Demos document rise of the Super-PACS (MS-NBC)...And finally, "Enron" -- a musical theater production about corporate crime, re-opens in Washington State (The Olympian).

Over at the CALPIRG blog, consumer advocate Jon Fox explains why CALPIRG, U.S. PIRG, Kids In Danger and other leading groups have asked the Consumer Product Safety Commission, in a letter, to recall the Bumbo baby seat. Previous remedial actions, including labeling the seat with warnings, haven't prevented an alarming number of injuries, including over thirty skull fractures.

Media Hit | Democracy

MSNBC: "Auctioning Democracy"

Host Chris Jansing and guests Rana Foroohar of Time Magazine, Ben White of Politico, and Richard Lui of MSNBC discuss U.S.PIRG and Demos's "fascinating" new report "Auctioning Democracy: the Rise of Super PACs and the 2012 election" on today's episode of Jansing & Co.

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