Massachusetts moving money out of 3 big banks to protest credit card rates

[Bonobo]

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/14/AR2010041404863.html

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Massachusetts officials on Wednesday announced plans to move millions of dollars in state investments out of some of the nation's biggest banks to protest credit card interest rates. State Treasurer Timothy Cahill said the state has removed Bank of America, Citi and Wells Fargo from a list of institutions approved for new state investments. Massachusetts, which is the only state to make such a move, is also beginning to divest $243 million in funds held at those banks, though the process could take up to six months.

"We want to bring some fairness into the issue," said Cahill, who is running for governor. "I don't think what we're asking is . . . out of line."

The announcement -- made at a raucous rally on Capitol Hill organized by the Metro Industrial Areas Foundation, a network of religious and citizen advocacy groups -- is part of a wave of consumer backlash over the banking industry's role in the worst financial crisis since the Great Depression. Congress has enacted sweeping credit card reforms that limit how and when issuers can raise rates and is in the midst of debating the creation of an agency dedicated to protecting consumer rights.

Massachusetts law caps interest rates at 18 percent. In the fall, the Greater Boston Interfaith Organization began urging officials from the state Treasury department to tackle the usury issue. Last week, state officials met with officials from Bank of America, where Massachusetts has $231 million in investments, to request that it meet that cap for state residents. When the bank declined, Cahill said, his office decided it would shift the funds into other accounts. Massachusetts also has $9 million invested with Citi and $3 million with Wells Fargo.

Spokespeople for Bank of America and Wells Fargo said their firms regretted the state's decision. Bank of America noted that it charges interest rates of about 15 percent for about 70 percent of its customers. Citi did not return a call requesting comment. Credit card companies have said that they face higher costs from increased consumer delinquencies during the recession, which translates into higher interest rates for customers in good standing.
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Can you BELIEVE that BOA refused to CAP their interest rates at 18%!? EIGHTEEN-FRIGGING-PERCENT!! Is that not usury??

USURY -a historic perspective.
http://en.wikipedia.org/wiki/Usury
http://www.alternet.org/belief/144559/10_percent_interest_is_plenty_enough!_why_usury_needs_to_stop_now

[Bonobo]

1. 8 recs with no replies! Wow, this must be a record of some kind! nt

[csziggy]

2. That is because we agree with the subject but have little comment on it n/t

[Bonobo]

8. That's fine, but with the DU system...

The thread will sink with only recs and no comments. If it is an important subject, someone needs to kick it a bit.

[csziggy]

9. Today is not a good day for me - but I did comment

Some days - yesterday was one - I am coherent and able to write intelligent responses. Today, I hurt and it is hard to think. But I tried to bump the thread for you so others might see it.

[Bonobo]

10. I'm sorry you're having a bad day.

I wish there were something I could do.

Please PM if you would like to talk, ok? I mean it.

[csziggy]

11. Thanks, it is just a fact of life as I get older

If it gets too bad I have anti-inflamatories and vicodin, but they make me so groggy and stupid I hate to take them.

Thanks!

[louis-t]

3. THANK YOU MASSACHUSSETTS!

Oh, sorry, was I yelling?

[Kat45]

4. K&R

I'm proud of my state for doing this.

[Rex]

5. It is all usury, always has been.

And I think all these 'Cash Now' corner stores are hurting banks and credit card companies big time.

[FailureToCommunicate]

6. It IS a good thing, but Cahill is running for Governor - to unseat Governor Deval Patrick...

[MannyGoldstein]

7. This is how we get politicians to do stuff

Competition

[Wilms]

12. Nice. n/t