Lending on the Level-Playing-Field

Warren Stephens’ commentary on “How Big Banks Threaten Our Economy” (WSJ, Opinion, April 30) discusses systemic banking risks and states correctly that “we should promote competition and innovation in the financial industry, not protect an oligopoly.”  However, he misses an important and timely example of how rules are set in favor of banks over potential […]

The Credit Union Experience – Only for Some?

The Credit Union National Association found that 90 million American individuals enjoyed $7 billion in direct financial benefits from credit unions during the year ending June 2010.  These benefits came as lower loan rates, higher deposit interest, and lower fees than in offered by bank institutions.  Equally valuable, credit unions members experienced the sense of […]

Save Us from Congress’ “Savings” Scam

The Federal Credit Reform Act of 1990 (FCRA) may sound righteous, but it contains a scam costing consumers a pile of money.  The FCRA forces the Congressional Budget Office (CBO) to assume that loans made directly by the government earn huge profits (called “savings”) without provision that such estimates could be wrong.  Congress likes this […]

Increase Competition: A Gift Horse with Sound Teeth and Solid Performance

  The economy expanded at a 1.8% snail’s pace in the first quarter of 2011.  The large auto companies and banks are still repaying Federal stimulus loans.  In April, just half of small businesses report making capital investments, depressingly low for a group that is usually first to recover and hire.  Among consumers, many homeowners […]

Credit Unions Provide Persuasive Benefits to Consumers

Almost 92 million consumers do their banking through credit unions’ 21,000 branches.  While a typical bank has 15 times more assets than a typical credit union, the member-owned credit unions are able to offer consumers the same retail services at typically better prices.  Credit unions don’t compete for investment banking business, so they avoid those risks […]