Federal Reserve
9 Senators seek to delay debit card fee changes
A bipartisan group of senators recently introduced a bill that would delay a new federal regulation to lower the swipe fees banks charge merchants for debit card transactions. The proposed rules faced complaints from banks, credit unions and credit card companies. The Federal Reserve proposed cutting the fees to 12 cents a transaction, down from the current average of 44 cents a transaction. Full article.
Fed requires mortgage firms to disclose how payments may change
The Federal Reserve approved rules under the Truth in Lending Act requiring lenders to disclose how interest payments may change for adjustable-rate home loans. Mortgage firms must disclose details of the first rate adjustment for so-called “5-1 ARM” loans, and the disclosure must reflect the earliest date for a change in interest-only loans. Full article.
Fed proposes new rules to cut debit card fees
The Federal Reserve recently proposed new rules that could cut those debit card fees as much as 90 percent. The Federal Reserved proposed limiting interchange fees from 7 cents to 12 cents per transaction, or roughly 0.3 percent of the face value of a purchase. Final rules are to be completed by April and put in place in July. Full article.
Banks ease loan standards, but crunch isn't over
A recent survey by the Federal Reserve's senior loan officer indicated that the credit crunch is easing, but it's far from over. Banks loosened their lending standards in the third quarter, but loans remained hard to get by recent historical standards, a trend expected to continue for the foreseeable future. Full article.
Fed gears up for stimulus
The Federal Reserve is close to embarking on another round of monetary stimulus, against the backdrop of a weak economy and low inflation—and despite doubts about the wisdom and efficacy of the policy among economists and some of the Fed's own decision makers. Full article.
Fed takes small step to bolster recovery
At a meeting on August 10, the Federal Reserve indicated it will use money from its investments in mortgage securities to buy government debt on a small scale. That could help nudge down long- term rates on mortgages and corporate debt, but wouldn't have a dramatic impact. Full Article.
Federal Reserve eyes steps to bolster sputtering recovery
Federal Reserve officials cut their forecasts for growth this year and signaled they stood ready to take new steps to keep the recovery alive if the economy takes a turn for the worst. In their June 22-23 meeting, Fed officials saw the need to explore new options for bolstering the economy, and could create a new program to spark more lending to businesses and consumers. Full Article.
New Debit Card overdraft law
New Federal Reserve rules require banks to get permission from every checking account customer before giving debit card overdraft protection. If bank customers do not make a decision by August 15th, they will automatically be opted out of the protection. Full Article.
Fed Reserve Considers Exit Plan
With the economy getting stronger, the Federal Reserve this year can focus on how and when to pull back the stimulus money pumped out to fight the financial crisis. No major changes in rates or economic support programs are expected. Full Article.
Federal Reserve Bank: LA Pulling Through Recession with Little Pain
At the beginning of last year the question was, to what extent will the national recession hit LA? The answer, according to the Federal Reserve Bank of Atlanta: not much. Full Article.
