Banks to Feds: drop regulations or small businesses will get it
April 8, 2014 11:31 AM Subscribe
This is not the typical lobbying we think about; it’s more like lobbying-through-threat: try to regulate us, and we’ll make life so miserable for innocent bystanders that you’ll drop the regulations. Here, the regulation in question simply makes banks responsible for noticing the fraud happening over the payment system they nominally control. They don’t want to do it, because they don’t want to lose lucrative business from predatory scam artists while they look the other way. -- When a division of JPMorgan Chase refused to process payments for a small business selling condoms, it was not out of prudishness, but part of an attempt to force the US government to drop their payday loan regulation by hurting small business owners through overly liberal interpretations of federal guidelines.
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