Last year, during a time when the U.S. Postal Service (USPS) saw its delivery times, and other efficiency metrics collapse, policymakers in Washington kept pushing the idea of having the USPS offer small dollar loans and perhaps even bank accounts to consumers and the under-banked.
Given the challenges of doing its core functions well, its inability to keep its own fiscal house in order, never mind picking up the processes required to assist customers and service such loans, the proposal ended up in the “Dead Letter Office.”
Last week, Senate Banking Chair Sherrod Brown (D-OH) floated another banking concept: having the Federal Reserve enter the consumer banking and financial services market place. There are a number of regulatory issues that make this a seemingly even more unworkable than the USPS proposal: namely, having a regulator competing against those institutions it oversees. Never mind the odd scene of consumers lining up at the Federal Reserve on Constitution Avenue looking for their “in network” ATM.
Today, Senator Steve Daines (R-MT) asked Federal Reserve Chairman, Jerome Powell if the Federal Reserve was equipped to manage retail and commercial accounts and Powell’s answer was unequivocal.
“No. And of course we’re not permitted under current law. Thats never been our role and it’s not been the role of other central banks. … [I]t would be quite (emphasis Chairman Powell’s) a dramatic change and one that would require careful thought.”
View the full clip here.
Fed Chairman Indicates Consumer Banking Not in the Offing
Mar 25, 2021
Last year, during a time when the U.S. Postal Service (USPS) saw its delivery times, and other efficiency metrics collapse, policymakers in Washington kept pushing the idea of having the USPS offer small dollar loans and perhaps even bank … Read the rest
L. Jean Noonan to Join AFSA on the Gold Coast
Mar 25, 2021
AFSA is pleased to announce L. Jean Noonan, former head of the FTC’s enforcement division and longtime leader in the consumer credit industry, as a keynote speaker at the 2021 Independents Conference & Expo.
Noonan is a partner… Read the rest
American Rescue Plan Includes Additional Tax Credits
Mar 25, 2021
The American Rescue Plan (ARP), which was signed by President Biden on March 11, has two additional tax credits that may me of interest to AFSA members.
Employee Retention Credit
The ARP includes an extension of the Employee Retention Tax Credit… Read the rest
Illinois Governor Signs Anti-Consumer Rate Cap Bill into Law
Mar 23, 2021
The American Financial Services Association (AFSA) and its members who work to serve consumers in Illinois, are deeply disappointed with the governor’s decision to sign legislation that will hinder tens of thousands of Illinois… Read the rest
WATCH | Digitization in Auto Finance
Mar 23, 2021
Don’t get caught in the manual processes of 2020, it’s time to digitize. Featuring real-life examples to show the end to end car buying experience from the perspectives of the lender, borrower, and dealer. Learn what it means to digitize in … Read the rest
RELEASE | Broderick to Lead AFSA Vehicle Finance Division
Mar 22, 2021
WASHINGTON, DC, March 22, 2021 – The American Financial Services Association has announced the installation of Sandra Broderick, Head of Operations, Santander Consumer USA, as the 2021 AFSA Vehicle Finance Division Chair.
Broderick is… Read the rest
AFSA Supports SAFE Banking Act
Mar 19, 2021
On March 16, AFSA submitted a letter to Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA) expressing its strong support for the bipartisan-backed Secure and Fair Enforcement (SAFE) Banking Act of 2021. Sponsored by Representatives… Read the rest
AFSA Raises Concerns with CT Disclosure Bill
Mar 19, 2021
On March 16, AFSA sent a letter to the Connecticut Joint Banking Committee raising concerns with SB 745, which would create a new set of disclosures that commercial lenders would be required to provide borrowers at the time credit is initially… Read the rest
A Radical Regulatory Proposal
Mar 18, 2021
When it comes to laws and regulations around consumer credit, some policymakers, as the saying goes, seem intent on killing a fly by burning down the house. Sure, you address the issue, but consider all that ancillary damage.
That’s the point… Read the rest
WATCH TODAY | Changing Consumer Behaviors
Mar 18, 2021
The automotive industry has faced its share of obstacles and uncertainty over the last 12 months, from the pandemic itself, the rush to implement digital retailing solutions and accommodating the consumer through new and redefined dealership… Read the rest