SENATE BILL: Fair Banking Act (Failed)

[Southern Senator North Carolina Yankee]

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Sponsor: TNF

[Southern Senator North Carolina Yankee]

The sponsor has 24 hours to begin advocating for this.

[President Tyrion]

This legislation would be catastrophic to the economy. Zero interest home loans would essentially quadruple home prices (4.323% APR over 30 years comes out to about 3.6 times the base), and yet inflation would be cut to almost zero. So, essentially, there would be no increase in buying power while prices for those goods and services increase astronomically.

[Southern Senator North Carolina Yankee]

With all do respect for the Senator from the Midwest, he just doesn't seem to even differentiate between excessive profits and profits in general terms.

Profits are the means by which one is paid for engaging in an activity that benefits someone else and without which one would not benefit otherwise and thus creates mutual benefit and motivates that activity beneficial to someone else. It is a form of return on investment. In exchange offering up time, intelligence, creativity, organizational skills and investment capital, in order to make or produce something, money in excess of cost of the production is retained to compensate for all these aforementioned items. In their absence, there is simply no motivation to offer the product or service. The harder, more complex, or more risky the laying out of those, ought to proportionally lead to higher returns for them being put forth. There is nothing inherently corrupt in expecting a return for investing the above described resources of talent and time.

This would lead necessarily to the nationalization of the entire banking sector save maybe for banks lending to businesses and to other banks. The ones hit the hardest will be the smallest and branch bank, which will vanish. What remains will be concentrated in the hands of a few firms and thus bringing back the spectre of too big to fail, necessitating bailouts when they do.

[TNF]

I have introduced this legislation to begin a thorough debate on the future of the banking sector in Atlasia. I understand concerns that have been presented and am willing to consider amendments to this legislation.

[Fmr. Pres. Duke]

This is why I agree with TNF when he says he don't see eye-to-eye.

That said, I'll follow this debate and see if we can amend this to something reasonable. The basic issue I have with this is, cheap money will lead to excessive price inflation. See: the financial crisis of the 2000s, the current rise in tuition costs, etc.

[Southern Senator North Carolina Yankee]

Our best bet I think is regulation with regards to the banking sector and we have gone quite a lot in that regard as far back as 2008 with the restoration of Glass Steagal, to the regulatory package I composed in 2009 and amended a year later, and subsequent actions that we have taken in this regard as well.

We have to be careful because we want to avoid concentrations of assets and power into a few firms that can go astray and tank the economy. Over-regulation can lead to that by squeezing out the smaller and newer firms to the benefit of the larger firms, which will necessarily be less hubris in their actions and more convinced of their own invulnerability.

I think one of the mistakes made by the Bush administration was getting people into homes without doing enough to ensure they had a job that paid enough first. I think our best bet to improving people's living quarters starts with good paying jobs and even before that with a good education. We can regulate on excess but unless we see 1980 levels of interest rates, I don't think we have much of a problem wtih access to capital at affordable rates and more of a problem of the house or car itself being affordable.

[TNF]

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[DC Al Fine]

This bill would effectively eliminate personal banking and would send even more poors to cheque cashing places. I can't see how I can vote for this.

[TNF]

This bill would effectively eliminate personal banking and would send even more poors to cheque cashing places. I can't see how I can vote for this.

How? It establishes the right of everyone to a free checking and savings account and to basic transactional credit.

[DC Al Fine]

This bill would effectively eliminate personal banking and would send even more poors to cheque cashing places. I can't see how I can vote for this.

How? It establishes the right of everyone to a free checking and savings account and to basic transactional credit.

That's assuming that banks keep their brick and mortar branches open. Eliminating service charges would encourage banks to close up branches in poor neighborhoods, where small balances make it more expensive to operate.

There's a host of options for poors when it comes to banking. There are inexpensive brick and mortar banking options, and online banks are often free. This is an issue where education and PR campaigns would do a lot more than price controls.

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Origination
Status: Senators have 24 hours to object.

[Southern Senator North Carolina Yankee]

The amendment is adopted.

[TNF]

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[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Origination
Status: Senators have 24 hours to object.

[Southern Senator North Carolina Yankee]

Objecting on the merits, also there is a typo where it says, "credit unions shall off"


If the amendment vote passes, I will just fix the typo myself.

The problem with this is I worry that it might reduce access to such services to the very people we are trying to help.

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Origination
Status: Objection filed by Senator NC Yankee, A vote is now open on the amendment, please vote Aye, Nay or Abstain.

[DC Al Fine]

NAY

[Goldwater]

NAY

[President Tyrion]

Aye but with reservations that I'll try to address later

[🐒Gods of Prosperity🔱🐲💸]

Nay

[TNF]

Aye

[Talleyrand]

Aye

[Southern Senator North Carolina Yankee]

Nay

[Chancellor Tanterterg]

Abstain