Public Rage At Banks And Bailout Expressed in New Laws

Posted by – April 22, 2009

Cartoon by John Darkow, The Columbia Daily Tribune, Missouri

Cartoon by John Darkow, The Columbia Daily Tribune, Missouri

Americans are fed up with banks double dipping off them, pulling down billions in bailouts from taxpayers, while also squeezing us with increased fees and interest.

The backlash is now being expressed in Congress:

BAILED OUT BANKS

U.S. banks that issue credit cards have received more than $120 billion in taxpayer funds since October, money the government has asked them to use to expand lending.

But with U.S. credit card defaults at record highs, lenders are trying to protect themselves by tightening credit limits and closing accounts, actions that have infuriated lawmakers and consumers, and even triggered an inquiry by the New York state attorney general.

U.S. lawmakers also angry that the same banks, such as Bank of America, Citi and Chase, with big credit card operations, charge excessive interest rates and fees while getting bailouts from taxpayers who use the cards.

Source: Reuters: U.S. lawmakers consider credit card reform proposals.

How far should Congress go?

Nick