Crushing student debt is not only killing dreams, it’s hurting the broader economy.
The Consumer Financial Protection Bureau (CFPB) is warning of the “potential domino effects” to the economy of high student debt. A just-released report from the consumer watchdog highlights the ways this debt can deplete savings, limit spending, and shape choices about a graduate’s career path and where to live.
“College can open up many opportunities, and we do not [...]
Via Michael Krieger of Liberty Blitzkrieg blog,
[ZH: We have discussed this threat over the past several years (must read).] The obvious concept is that when the government runs out of money, or they face a drying up in interest for its debt, they will come for the $19.4 trillion in American’s retirement accounts. It seems that day may be finally drawing near.
I stopped contributing to my 401k back when I worked at [...]
PBS Newshour on new rules for banks.
Last night on PBS News Hour.
New Mortgage Regulations Require Proof of Ability to Repay – CFPB Press Release
Student loans were given out just like sub prime loans yet once obama doesn’t want to go after the bankers instead he wants the poor saps whose pensions funds, etc are invested in this garbage to pay for it. He would like the taxpayers to pick up the rest of it but he has opposition.
Private Student Loans Work Like Subprime Mortgages
CFPB, Obama Administration urges Congress to allow students to wipe [...]
by Jill Krasny and Noelia de la Cruz
The Consumer Financial Protection Bureau (CFPB) has added yet another to-do to its ever-expanding agenda:
On Wednesday, CFPB director Richard Cordray vowed to go after big banks that engage in transaction ordering—that is, ordering transactions from biggest to smallest—to hit customers with hefty overdraft fees.
“With the fast-moving pace of our modern economy, consumers may engage in numerous transactions and pile up multiple overdraft charges before realizing [...]
“The truth is [Cordray] could tell us the CFPB spent $100 million on paper clips last year and there is nothing Congress could do about it. Nothing,” the Alabama congressman said.
By Ronald D. Orol, MarketWatch
WASHINGTON — Republicans charged Wednesday that a new consumer-mortgage and credit-product watchdog bureau is unaccountable and a “recipe for disaster” because it is funded without the control of the congressional-appropriations process.
“We have a [...]
Student Protest Forces Sallie Mae To Alter $50 Fee Against Unemployed Borrowers
by Mandi Woodruff
The country’s largest private student loan lender, Sallie Mae, has changed the $50 penalty it usually charges unemployed borrowers to defer their loans.
Instead of going into the lender’s own pockets, the fee will now be applied to students’ loan payments.
The lender buckled under pressure from a student-led protest that garnered more than 75,000 signatures from people urging them [...]
by Lisa Du
Citigroup will stop offering mortgages through brokers, it was announced yesterday.
In doing so, the bank joins the ranks of JP Morgan Chase and Bank of America, who have already ended their relationships with brokers.
Since collapse of the mortgage security market resulted in the 2008 financial crisis, many banks have curbed their home loan programs and stopped relying on brokers—who bore a majority of the blame for issuing the many of those subprime mortgages, [...]
February 1, 2012
Sen. Mike Lee (R-Utah) accused President Obama of “trampling” on the U.S. Constitution when he made several contentious recess appointments earlier this month.
The president ignited a partisan controversy when he named Richard Cordray to be director of the Consumer Financial Protection Bureau, as well as three members of the National Labor Relations Board, circumventing GOP opposition in the Senate and ignoring pro forma sessions to do [...]
It isn’t just Richard Cordray. Obama is also set to use recess appointments to install his picks to the National Labor Relations Board, according to White House officials and others familiar with ongoing discussions.
The move, which is arguably as impotant as the Cordray appointment, will ratchet up opposition from Republicans and make this an even bigger fight, since they have been attacking the NLRB regularly for its moves to streamline [...]
From Washington Times:
Congressional officials said President Obama used his recess appointment powers Wednesday to name a head for the controversial Consumer Financial Protection Bureau in a move Republican lawmakers said amounted to an unconstitutional power grab.
The president acted just a day after the Senateheld a session — a move that breaks with at least three different precedents that said the Senatemust be in recess for at least three days. Mr. Obama himself was part of two of those [...]
By Alexander Bolton
(The Hill) President Obama is under strong pressure from liberals to use his recess-appointment power during the congressional break, but doing so would break 20 years of precedent, putting him in a tough position.
Using this recess to appoint Richard Cordray to head the Consumer Financial Protection Bureau, as liberals have urged, would also contradict a brief issued by the Clinton Justice Department in 1993, which Obama’s own deputy [...]
The short answer is ‘maybe.’ It is more of a buyer beware situation than most had thought, and still think.
It is nice to see someone in the mainstream media addressing this situation intelligently and without making an apology for what is apparently a criminal act and surely an egregious abuse of the public trust.
It is an axiom that it is not the initial crime that does the greatest and most widespread damage, [...]
“Back in the 80′s, Richard was also a five-time Jeopardy champion and a semi-finalist in the Tournament of Champions. Not too shabby,” President Obama said as he announced the nomination of Richard Cordray to run the consumer bureau on Monday.
“That’s why all his confirmation — all the answers at his confirmation hearings will be in a form of a question,” Obama said to silence.
“That’s a joke,” [...]
“By Deborah Solomon
The White House is expected to nominate a director to run the new Consumer Financial Protection Bureau next week, according to people familiar with the matter.
The nomination – among the most highly anticipated personnel moves in Washington – would come as the agency officially opens its doors next Thursday. The Treasury Department will transfer power to the CFPB on July 21, one year after the agency was created [...]
Ohio’s Cordray Interview About Lawsuit Against Ally (video)
Oct. 6 (Bloomberg) — Ohio Attorney General Richard Cordray talks about the state’s lawsuit against Ally Financial Inc. Ohio’s suit alleges that Ally’s GMAC mortgage unit violated state consumer law and committed fraud by filing false affidavits in foreclosure proceedings. He talks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)
Bank foreclosure cover seen in bill at [...]