Reining in Wall Street Updates

(UPDATED) The American Bankers Association's latest effort to kill financial reform is to raise millions of dollars through a new dark money group (like a secret SuperPAC) disguised as a social welfare organization but designed to elect Senators who agree with their Bizarro-World narrative that the financial collapse of 2008 was not their fault.  Meanwhile, read more Friday Financial Follies, because in Washington, we don't have to make this stuff up.

Survey: Consumers happy with Credit CARD Act

By | Ed Mierzwinski
Consumer Program Director

Over at Time Magazine, reporter Martha White says a JD Power survey finds consumers are happier with their credit cards. She adds "To give credit where it’s due in this case, look to the CARD Act, that big piece of financial reform legislation that was passed in the wake of  the financial crisis in 2009 over the strenuous objection of the banking industry."

SEC mostly ignores us, proposal weakens investor protections

By | Ed Mierzwinski
Consumer Program Director

Yesterday, the Securities and Exchange Commission (SEC) issued a proposed rule implementing the controversial JOBS Act that fails to protect small investors from a likely onslaught of sales pitches online and on the phone -- including from private equity and hedge funds. Positively, it's only a proposed rule, at least nominally subject to amendment, not an interim final rule.

The FTC today announced a $25 million settlement with the marketers of the Ab Circle Pro, an exercise machine that promises you can lose weight and get ripped abs in "just 3 minutes a day;" meanwhile, a federal judge has also approved a $478 million settlement in the FTC's case against a "get rich quick" infomercial king. A good day for consumers.

More credit card banks quit evil ways

By | Ed Mierzwinski
Consumer Program Director

In July, the CFPB slammed Capital One for tricking consumers into buying over-priced, under-performing credit monitoring and debt-cancellation subscription products. More good news: the Wall Street Journal is reporting that Bank of America has stopped selling debt cancellation products and that Citibank is in some sort of timeout.

UPDATED: WE WIN! SEC AGREES TO DELAY AND CONDUCT CAREFUL CONSIDERATION OF BAD PROPOSAL. Original: The SEC could vote as soon as August 22 to weaken protections against investor fraud -- under the false guise of stimulating jobs! U.S. PIRG, the Consumer Federation of America, the AFL-CIO, a former SEC commissioner and other investor advocates have sent a strong letter to the SEC urging it not to act, especially under unjustifiable emergency rules that deny a reasonable public comment period.

The venerable English football club Manchester United, founded in 1878, is expected to file an IPO today under a new U.S. law, the JOBS Act, that passed overwhelmingly because it was intended to help newer, smaller companies go public. Over at The Motley Fool, they say: "Thank the JOBS Act for the Ugliest IPO of the Year."

Last week, Minnesota Attorney General Lori Swanson settled her case with Accretive Health, the debt collector that allegedly acts as a gatekeeper to obtaining emergency-room treatment. The AG's legal filing has  affidavits from 60 victims but in a press release, the debt collector says "the Attorney General did not and could not identify a single patient in Minnesota who experienced a problematic interaction with an Accretive Health employee." Hunh?

Wall St. Computers Run Amok and More Friday Financial Follies

By | Ed Mierzwinski
Consumer Program Director

Will the blowback from Wednesday's Wall Street high-speed trading crash caused by computers running amok revitalize efforts to enact a small tax on stock transactions? Meanwhile, here are the rest of the week's financial follies, finishing with a Funk #49.

Friday's Financial and other Congressional Follies

By | Ed Mierzwinski
Consumer Program Director

Yesterday the U.S. House passed a bill stopping all regulations designed to promote the economy, preserve the environment or protect health, safety and pocketbooks. Meanwhile,  Citibank's Sandy Weill, the man who in 1999 convinced Congress to destroy the 1932 Glass-Steagall financial protections, has changed his mind.

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