Basel Proposal Filled with Misinformation: WOCCU

The Basel Committee strays from its origins to expand its influence not because it is doing any good but because it likes its self developed importance. When the large, multinationals get into trouble, the boys and girls of Basel stir themselves and, in the end, demand more capital to bulletproof the economies of the world. The grade for their efforts since 1973 is a big fat F. Community banks and credit unions should not be a topic of discussion for these clowns who have never headed off anything and just reacted once the s–t has hit the fan. But once again they are trying to bring the tiny community and regional financial institutions into their sphere of influence because they want to be the be-all and end-all for regulatory policy. If they were graded on their effectiveness, we would disband them or at least ignore their self serving rhetoric. I applaud the World Council for putting these bums in their place and urge all credit unions to support WOCCU in its righteous criticism of this ineffective and troublesome group.

Dennis Moriarity

President/CEO

Unity Credit Union

Warren, Mich.

Senators Discuss Effects of Consumer Finance Regulation

In fact, it is consumers who have benefitted most from reform, according to research by the prominent economist Robert Shapiro, who found consumers saved almost $6 billion in the first full year after debit reform thanks to lower fees.

As for free checking, Professor [Todd] Zywicki's claims have been debunked several times. According to Georgetown University law professor Adam J. Levitin, the assertion that reform reduced free checking is also just plain wrong – based on faulty statistics the banks cherry picked to make their argument.

Using the American Bankers Association's own figures, which are far more reliable, Levitin has shown free checking actually increased after Durbin, from 53% of bank customers to 61%.

The incontrovertible fact remains: This is a rigged market dominated by Visa and MasterCard, which price fix exorbitant swipe fees so their member banks don't have to compete.

This raises prices for everything and everyone, whether you use a card or not, and that hurts the poorest people most. The fees, which have swollen into many merchants' second largest operating expense, prevent merchants from expanding and thus hold back the entire economy.

The only people who benefit are the bankers.

Michael Flagg

Communications Merchants Payments Coalition

Washington