May 24th, 2009

neutral

Credit Card Win

I was pleased to see this example of sensible regulation emerge:

Obama Signs Sweeping Credit Card Reform Bill
John Poirier, Reuters: "US President Barack Obama signed into law on Friday sweeping reforms that restrict credit card interest rates and fees, marking a victory for Democrats trying to help recession-weary consumers and a setback for banks seeking to retain sorely-needed revenues. The law is expected to hurt profits of major card issuers such as Citigroup Inc, Bank of America Corp, JPMorgan Chase & Co and Capital One Financial Corp. Banks say the changes may cut the flow of credit to consumers because it will make it more difficult for issuers to set rates based on the risk their customers pose."