Federal Reserve Governor Randall Kroszner said Thursday that the central bank may use its legal authority to limit predatory lending.
“May use”? And this only came after Rep. Barney Frank (D-MA) threatened to strip the Fed of their power to write such rules if they don’t act now.
The Fed appears beholden to investment banks first and the public second. Investment banks spawned the subprime market and made billions off predatory lending. Yet the Fed has done nothing to stop this, even after the problems became apparent to all.
They’re doing the same with credit cards too. “I feel that (the Fed) just bends over backwards for the banking industry” said a consumer advocate.
We need a banking system that puts the good of society ahead of profits for the wealthy.