Landmark Legislation
President Obama has signed landmark Wall Street reform, that will protect taxpayers and ensure that Main Street will never again have to bail out Wall Street. When Wall Street melted down more than two years ago, our economy was devastated. And when the big banks failed, they brought down the rest of our economy and left millions jobless and our economy in a prolonged recession.
Frequently, Congress has a tough time realizing that in many cases the best thing they can do is get out of the way. However, the legislation Obama signed into law contains a provision that reduces red tape and allow small businesses to flourish by taking advantage of competition and market forces.
When, we put our money into checking accounts we receive interest on our deposits, but the same can’t be said for small businesses. In fact, the Banking Act of 1933 prohibits banks from paying interest on business checking accounts. While large corporations are able to use high balance sweep accounts to earn interest on their cash, these accounts do not work for small businesses due to the high balance requirements.
Congressman Scott Murphy represents those of us in New York’s 20th District. He introduced the Business Checking Fairness Act, which was included in the Wall Street Reform Bill. It repeals a law dating back to the Great Depression preventing small businesses from earning interest on their business accounts. This was one of those outdated laws that had no business being on the books.
This is a big win for small business, who for years couldn’t receive interest on their checking accounts. Unfortunately, the provision won’t require banks to offer interest bearing checking accounts, but it will give banks the option. This should increase competition among banks and lift an unfair burden from our small businesses during these tough economic times.
According to Rep. Murphy this legislation will allow our small businesses to grow, protect consumers and crack down on Wall Street. Ultimately, the Wall Street reform legislation should strengthen the economy and strengthen our banking system.
Frequently, Congress has a tough time realizing that in many cases the best thing they can do is get out of the way. However, the legislation Obama signed into law contains a provision that reduces red tape and allow small businesses to flourish by taking advantage of competition and market forces.
When, we put our money into checking accounts we receive interest on our deposits, but the same can’t be said for small businesses. In fact, the Banking Act of 1933 prohibits banks from paying interest on business checking accounts. While large corporations are able to use high balance sweep accounts to earn interest on their cash, these accounts do not work for small businesses due to the high balance requirements.
Congressman Scott Murphy represents those of us in New York’s 20th District. He introduced the Business Checking Fairness Act, which was included in the Wall Street Reform Bill. It repeals a law dating back to the Great Depression preventing small businesses from earning interest on their business accounts. This was one of those outdated laws that had no business being on the books.
This is a big win for small business, who for years couldn’t receive interest on their checking accounts. Unfortunately, the provision won’t require banks to offer interest bearing checking accounts, but it will give banks the option. This should increase competition among banks and lift an unfair burden from our small businesses during these tough economic times.
According to Rep. Murphy this legislation will allow our small businesses to grow, protect consumers and crack down on Wall Street. Ultimately, the Wall Street reform legislation should strengthen the economy and strengthen our banking system.
posted by Jim O'Leary | 10:50 AM
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