For 10 years—including the boom times banks enjoyed in the first half of this decade—the FDIC was prevented from collecting fees from 95% of financial institutions, which it would have used to further build up its safety net in the event it would someday have to bail out a bunch of stupid losers who confused banking with alchemy.
FCC Chairman Kevin Martin is calling it quits as of inauguration day. The Chairman, who could have served for three more years, is heading to the Aspen Institute, a preserve for endangered spectacles masquerading as a “nonprofit leadership group.” Martin’s tenure was a mixed bag for consumers…
In this letter (PDF) sent to CPSC chair Nancy Nord, and released to the public, Consumers Union and a bunch of other consumer interest groups ask the CPSC to please do its part to clear up all the confusion over the coming Toy Testing Apocalypse. Don’t want to read the whole thing? Here’s a much shorter summary:
Consumerist reader Darkrose writes, “I just got this in my e-mail. Thought you guys might be interested in it.” In the email, GM’s president Troy Clarke is in high PR mode, pointing out the grave consequences and emphasizing that GM wants not “a bailout but rather a loan that will be repaid.” We thought other readers who aren’t GM customers would find it interesting.
The LA Times says that Amazon.com had a mask depicting democratic presidential candidate Sen. Barack Obama listed under the search term “terrorist costume.” The listing has since been pulled but the LA Times has a screengrab.
For the sake of balance, vis-à-vis Obama’s Taking It Seriously, here’s one for Sarah Palin.
Obama just gave his acceptance speech to become the Democratic candidate for the next President of the United States of America. Here’s what was in it for consumers, he promised to:
Despite fierce opposition from the local water management district staff, and concerns that it would deplete an already scarce natural resource from the people who live there, Nestle managed to secure a deal to pump nearly 1.5 million gallons of water a day into their Deer Park bottling plant for the next ten years. Nestle pays no other fees for the water beyond the $230 license—in fact, “Nestle has received two [tax] refunds totaling $196,000 and requested a third tax refund.” To make the matter even more offensive, the plant hasn’t delivered on its commitment to employ 300 workers, and it so far has failed to bring in the estimated $12 million-a-year to the local economy. The St. Petersburg Times has a rich, infuriating history of the Nestle fiasco and how they’ve conned Floridians out of their own water with the help of state politicians.
All Presidential candidates should have a plan to wean America off its credit card dependence. We collectively owe almost $1 trillion to credit card companies, but only the Democratic candidates have written plans to reform the credit card industry. Alpha Consumer wrote an excellent summary of their competing plans to strike at some of the industry’s most harmful practices.
A law professor and associate professor of geography set out to create the most comprehensive map of U.S. payday lenders to date. What they found, to their surprise, was “a surprising relationship between populations of Christian conservatives and the proliferation of payday lenders.” And it’s not a side effect of a poor population that happens to be Christian, according to the authors: “Our research showed that the correlation between payday lenders and the political power of conservative Christians was stronger than the correlation between payday lenders and the proportion of a population living below the poverty line.”
A look at where the candidates stand on the sub-prime mortgage meltdown and credit crisis. [Bankrate]
Last week, a United Airlines flight from the US to Tokyo cost $400, plus $300 in fuel surcharges. Airlines say they’re passing on higher fuel costs, but some see it as an excuse to jimmy a hidden fare hike. The Los Angeles Times writes, “You can argue forever about whether this is justified, but how they are doing it shows their worst nature,” [Joesentme.com, a business traveler website] said, noting how, for instance, a surcharge is not eligible for a corporate discount.” Companies love to stuff their operating costs into the fees, taxes and surcharges on your final bill. It means they get to advertise artificially low prices, lure deal hunters, then soak them later.
Tony Blair will join JPMorgan Chase & Co Inc, the third largest bank in the U.S., as a senior advisor. We wonder if Countrywide is courting President Bush for a similar position in 2009.
Most Presidential candidates could not care less about consumer protection, but several have taken a stand on one of the sexier consumer issues: toy safety. Let’s break down where they stand.
Last week, the House of Representatives voted 407-to-0 to approve a consumer product safety bill that greatly increases the scope and power of the Consumer Product Safety Commission (CPSC).
Today the EPA announced that California and 16 other states will not be allowed to make their own laws governing greenhouse gas emissions, because “The Bush administration is moving forward with a clear national solution, not a confusing patchwork of state rules.” California’s robot leader of the future and erstwhile killing machine promptly announced that California will be suing the federal government, and in a press conference today said that “It’s another example of the administration’s failure to treat global warming with the seriousness that it actually demands.”
Today, in an attempt to anger fans of both regulation and deregulation, the FCC approved two new rules. The first one restricts cable companies to owning no more than 30% of a market; the second one “gives owners of newspapers more leeway to buy radio and television stations in the largest cities.” One nice thing about the first rule is that Comcast can’t buy any more cable companies. One bad thing about the second one is that it will likely mean that Rupert Murdoch will win “permanent waivers to control two television stations in New York, as well as The New York Post and The Wall Street Journal.”