Also in this playlist...
This transcript is automatically generated
Watchful President Obama will sign the credit card reform bill into law this afternoon will more regulations on credit card companies.
-- protect consumers dole ought to be at risk.
A punishing responsible customers and limiting penalties on riskier borrowers.
Joining us right now is often -- the of the President's Economic Recovery Advisory Board.
-- -- -- -- -- Dagger to say again like with.
Are great so he's gonna sign into law later on this afternoon.
When you join me for the people at home how us is gonna.
Help consumers and how we make sure that it doesn't hurt some of the better borrowers.
OK we got two parts or how it's gonna help consumers is gonna bring some sensibility and balance back to -- clearly.
What we've seen in the president's stated many times -- nothing wrong with being in the credit card business there's nothing wrong with them making money.
What has happened in people ought to pay back their bills and they don't there should be consequences.
But what we've seen in the last several years.
Is banks turning penalty fees into a business model engaging in deceptive practices and this -- is gonna change that it's gonna change.
They have to have plain language clear disclosure.
It's gonna get rid of some of the worst forms of tricks that some of these guys hitting gauged in so.
So consumers will be protected and transparent able to compare their cars you know -- -- on your second question go -- which is about how -- -- prevent this from harming other people.
As second thing -- -- prevented from making credit dry out.
I think that this has been -- dramatically overstated by the credit card companies so first of all.
The credit card companies aren't a charity.
If they thought that they could charge money to their better customers they would already be doing that.
The fact that they don't is because it's a competitive business for those good customers and they make money.
On every transaction they charge the -- 2% so I don't see that is shifting to higher fees on other customers.
And in terms of still continuing credit to the people who are going to be protected.
This argument that they are making is essentially if we can't.
Charge penalty -- that you don't understand.
And if we can't use obscure language so you don't see that would we're gonna Jack up rates on you and did not even worth having you with a customer.
That strikes me as a strange argument for them tonight.
OK let's let's switch gears for just a moment because we know this is about to be signed into law there's -- Washington Post reports that that GM -- -- fact file.
For bankruptcy Chapter Eleven before -- the June 1 deadline can you confirm or deny that well look.
Well I I've seen that report I've seen reports saying that people think big and avoid bankruptcy.
That president gave them a deadline usually these things go right up to the deadline as you saw with Chrysler.
Envisioning and working through the scenarios of every possible permutations.
And you know hopefully we avoid that worst.
Forms that we don't have to go to bankruptcy.
But you know you gotta consider every possible option.
What things we heard today as a result of bankunited going under and a consortium of private equity guys purchased seeing -- financial institutions from the FBI Sierra bunch of their deposits -- -- we heard that the president.
Signed into law basically laughed when I -- Wednesday just two days ago.
An open -- of a line of a hundred billion dollars for the FDIC it's not something we heard until today.
Without a closed door situation and -- -- tell me the back story and that's.
Well I don't know the full.
Back story on -- inside the deliberations on the financial side.
Clearly the FDIC's one of our strongest institutions.
And it's a key linchpin and help and us deal with.
Financial crisis and especially.
You know it's who we rely on when you get in these troubled banks that go -- there.
It's not a secret to see that we've had a whole lot of banks go -- You know far more than -- a typical period and so the FDIC's -- leave -- we absolutely have to keep the FDIC and in a strong position.
Often a lot of people are over using the phrase green shoots it is becoming a little too much of the every -- -- language.
Are you concerned that people are getting a little too optimistic about what they perceive is good info as opposed to you -- -- I guess is the best way to put it.
Well I think there's something to that now the terrible Gardner so that that phrase their red squad debate.
Then there's this.
I think if you raise an important point and that is.
It's gotten less bad there have been a couple of places where you've seen some moderate optimism.
But we really that nobody who looks at the data can think that we -- in a recovery at this point we are still we still a lot of work to do.
You -- we've seen easing in the credit markets I believe because of a lot of the policies enacted by the administration.
The administration put in the biggest recovery package in American history.
It's just the beginning of that package coming on line and that's over the course of this year going to be coming in and hopefully we can turn this thing around.
By the end of this year beginning -- next year.
But I don't think we're out of the woods yet by any means often most pressing question of the day is the -- gonna let you actually have the weekend to yourself and go Barbeque.
Well you know I'll go to Barbara give if I have to come out here it could get out the I don't know -- -- get the whole budget through the that the metal detector.
Hi yeah I I I I saw some of those guys coming out to check you there -- you know some of the security.
Are often thinking very much -- happy wedding and -- just sitting here.
Filter by section