Wednesday, September 12, 2007

"Oil Hits Record Near $80 On Tight Supply" (via Reuters)

As our nation faces another economic energy crisis, what exactly are Visa®, MasterCard® and its member banks doing to help? The reality is that as gas reaches $80.00 a barrel, the service stations are forced to pay in most cases, a percent of every tank fill-up in interchange fees. The result is that the banks are realizing a huge multi-billion dollar windfall profit at the expense of motorists and all consumers. Is this how they are helping to cover their real estate loan losses?

Let us keep in mind that the financial credit crunch caused by sub-prime loans is affecting the banks. The Wall Street Journal (Sept 8, page B-14) )reported that the losses to banks could be about$100 billion. Yes, the banks have reserves, but we wonder how that will be impacted when our litigation is resolved; from where will the money come from?

[Commentary:, via news report from Reuters]