Category Archives: Credit cards

Mario Draghi: The ECB Has No Mandate To Ensure Checks Clear Or Credit Cards Work

By Nathan Tankus, a writer from New York City. Follow him on Twitter at @NathanTankus Last week Mario Draghi held a press conference following the decision to raise ELA a paltry 900 million dollars for Greek banks. In that press conference he said many things but I’d like to focus on one passage that has gotten […]

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Cecilia Nahon: Argentina vs the Vultures

This Institute of New Economic Thinking interview describes how Argentina’s completed sovereign debt restructuring was derailed by vulture fund NML Capital in a reading of the original bonds’ pari passu clause that was contrary to well-established practice. Even the US Treasury had weighed in on the side of Argentina in an amicus brief. The interview of Argentine ambassador Cecilia Nahon by Marshall Auerbach goes into the backstory of the restructuring, that Argentina’s woes in no small measure resulted from following the IMF’s neoliberal fads du jour.

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The Economics of P2P Lending

Yves here. The odds are high that if super low interest rates continue (virtually certain), P2P lending will continue to rise rapidly as yield-desperate investors seek better returns. As more money flows through these channels, it virtually assures less careful selection. The question is how bad the downside will be when lenders get bruised and how the market evolves after its inevitable first large-scale setback (the first venture in this market ended in tears, but it was sufficiently small so as not to have burned enough people so as to sour the image of this concept).

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Rolling Jubilee: A Wolf in Sheep’s Clothing?

Yves here. As much as we we’ve been vocal supporters of many of the initiatives of the Occupy Wall Street movement, such as the excellent work of Occupy the SEC, the impressive relief efforts of Occupy Sandy, the success of local Occupy Homes groups in combatting foreclosures, the many projects of the Alternative Banking Group (including both a book explaining the crisis and its 52 Shades of Greed card deck, and last but not least, Strike Debt’s Debt Resistors’ Operations Manual.

However, Rolling Jubilee is a notable exception.

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Has Apple Pay Just Put Apple in the CFPB’s Crosshairs?

I strongly suggest you read Georgetown law professor Adam Levitin’s new post on why he believes Apple’s newly announced Apple Pay service puts Apple under the CFPB’s jurisdiction but virtue of having made itself a regulated financial institution. And Levitin means all of Apple’s consumer services, not just Apple Pay. He believes that Apple is […]

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Banks Scapegoat Regulations for More Costly Loans Post Crisis

Banks and their allies have been using every opportunity possible to blame regulations for changes in their business models after the crisis, particular if they can make it sound like the broader public, as opposed to their bottom lines, is what is suffering. Normally this messaging effort stays at the background noise level, but sometimes the lobbyists succeed in getting their message treated as a story in its own right.

A recent example is a Financial Times story early this week…

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Target, Neiman Marcus Credit Card Hacking Reveals Third-World US Payment Systems

Occasionally, we’ve commented on the shoddy state of US credit card payment infrastructure. One of the noteworthy aspects of the fiasco of recent US retailer security breaches is that the media has more or less ignored the question of what could have been done to forestall these incidents, which in the case of Target involved as many as 70 million customers, and Neiman Marcus, under (but presumably not much under) 1 million.

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