Consumerist
videos
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federal reserve
Starting July 1, 2010 Overdraft Fees Will Require Consumer Consent
The Federal Reserve has announced a new rule requiring overdraft fees on one-time debit card transactions and ATM withdrawals to be "opt-in." The new rule will take effect July 1, 2010. "The final overdraft rules represent an important step forward in consumer protection," said Federal Reserve Chairman Ben S. Bernanke in a prepared statement. "Both new and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service." More » -
transparency
Judge Orders Fed To Reveal Stimulated Companies
The Federal Reserve tried to hide the identities of companies that received emergency funding as the world economy went to hell, but a federal judge stepped in with a backhand Monday and stopped the practice, saying the Fed had failed to show that naming the businesses would cause "imminent competitive harm." More » -
nice work if you can get it
Banks To "Earn" $38.5 Billion From Overdrafts This Year
Consumers aren't the only ones looking to save money and gain a little extra cash on the side. Banks are people too, you know! In the face of toxic assets and credit card delinquencies, they've come up with a plan to increase their revenue: New fees! Higher fees! Higher minimum balance requirements! Trickier overdrafts! More » -
the gift that never stops taking
Your Visa Gift Card Will Self-Destruct If Used Within 24 Hours
Stephanie bought a $100 Vanilla Visa gift card at her local CVS in Richmond, VA. She went right home and tried to use it to make some purchases online. When the card was declined, she studied the fine print that came with the card: "Funds may not be available for 24 hours after purchase." So she waited the 24 hours and tried it again the next day. Still no luck. When she called the customer service number she was told to go back to CVS. At CVS, a manager told Stephanie (and apparently many others before her) that by using the card within 24 hours she had rendered her card agreement invalid. Bang, there goes $100. More » -
bank of america
Bank Of America CEO: The Bush Administration Made Me Do It!
New York Attorney General Andrew Cuomo's office is at it again. They've been investigating the circumstances that led to the merger of Bank of America and Merrill Lynch and the subsequent bonus payments to executives. In a letter to Senator Chris Dodd (D-CT), chairman of the Senate Banking Committee, Cuomo quotes Bank of America CEO Ken Lewis as saying that former Treasury Secretary Hank Paulson threatened him with removal from his position and mass firing of the board and senior management if he didn't allow the merger to go through. More » -
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aig bailout
Treasury Secretary Wants The Ability To Seize Insurance Companies, Hedge Funds
The Washington Post is reporting that Treasury Secretary Timothy Geithner will testify before the House Financial Services Committee today and argue that his agency needs broad powers to seize companies and "wind them down" without allowing them to enter bankruptcy. More » -
odd
Federal Reserve Chairman Ben Bernanke's Childhood Home Sold After Foreclosure
Federal Reserve Chairman Ben Bernanke is from a small town in South Carolina called Dillon — a town where the impact of the economic meltdown is being felt keenly. More » -
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regulations
Should Banks Be Required To Ask Permission For Overdrafts?
When you sign up for a checking account, most banks automatically enroll you in a "courtesy overdraft protection" program. This program means that the bank will approve overdrafts from your ATM or debit card — and charge you a $35 fee for each transaction, etc. But what if you don't want the service? Well, the Federal Reserve has proposed a new regulation that will require banks to ask your permission before they sign you up. More » -
To fix the economy, the Fed needs to lower interest rates below zero. Trouble is, that's impossible. [Business Week]
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The credit card regulations that the Fed enacted last month won't take effect until summer of 2010, so Congresswoman Carolyn Maloney is reintroducing the Credit Cardholders' Bill of Rights, which offers the same reforms but would come into effect 90 days after the president signs it.
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bad banks
Why The Fed Is Making "Bad Banks," And Why That Could Be Good
Marketplace's Paddy "Sexycakes" Hirsch whips out the whiteboard to explain the how and why of the latest gimmick the Fed is deploying to ease the financial crisis. Now they're making "bad banks" which will go buy the toxic assets from the banks so they can clean up their books. Hopefully over time these assets will mature past their heavily discounted value and the taxpayers can make money on the deal. But if the situation deteriorates and too many of the assets go to zero, as some indeed may, then we'll be sitting on a big fat goose egg, again. Video inside. More » -
wall street bailout
Federal Reserve: Don't Get Excited, We're Not Done Bailing Out Banks Yet
Federal Reserve chairman Ben Bernanke said that the $800 billion stimulus plan being discussed by the new administration might "provide a significant boost to economic activity," but that it wouldn't work without more bank bailouts. More » -
money
Now Is The Time To Lock In Interest Rates With CDs
If you're a saver, the Fed flipped you the bird this week. They dropped interest rates and introduced "quantitative easing," two things that will make interest rates plummet. Here's how you can protect yourself. More » -
money meltdown
Fed Cuts Rates To ZERO. Yes, Zero. 0%.
The Federal Open Market Committee today established a target range of zero to 0.25% for its fed funds rate. This, as you might imagine, is unprecedented. More » -
money meltdown
Stock Market Pleased By New Phase Of Bailout
Today the Federal Reserve announced the creation of a new special purpose entity that will buy consumer and business debt. Under the new plan, the Treasury will provide $20 billion dollars in of credit protection (from the Troubled Asset Relief Program) — and will absorb most of the losses, should they occur. More » -
liberty dollars
How Uncle Sam Killed The Liberty Dollar
There's a new story in Triple Canopy about The Liberty Dollar, an alternative American currency started by Bernard von NotHaus that experienced a grassroots backing among some shoppers and merchants, until the Feds shut it down. Unlike the "real" dollar, Liberty Dollars are in fact... More » -
bailout
American Express Becomes A Bank... And Wants Bailout Money
American Express won U.S. Federal Reserve approval to become a bank holding company — giving it access to the bailout party as credit card defaults climb. Bloomberg News says that the Fed waived the usual 30 day waiting period because (in the words of Fed Chairman Ben Bernanke) we're experiencing "unusual and exigent circumstances affecting the financial markets." Today, American Express has requested $3.5 billion in taxpayer-funded capital from the federal government, says the WSJ. More »
