host: the american bankers association weighed in on this proposalnd ts is part of what they said.he proposal will hasume by reducing competition and increasing cost of payment. it will result in lower credit scnd is in contrast with the act. credit card issuers will be forced to reduce credit lines, tightening standards, and raising apr's for all americans including the millions who pay on time. how would you respond? guest: we've heard this before. we've heard when congress passed the card act. the banking industry will say we have to raise interest rates, be more stringent and particular about who has access. why would the cfpb want to hurt the people they claim to help by denying them access to credit? a study done for years after the card act suggests that the industry and banks and card issuers did not raise interest rates. they did not become more stringent with giving access to credit, hence them preying on subprime consumers. that study showed the card act saved consumers $11.9 billion a year. the cfpb's proposal has the same effect. it could save consumers $9 billion a ye

. >> host: the american bankers association weighed in on this proposal and this is what part of what theyaid.d. the extreme cfpb proposal harm consumersy reducing competition increasing cost of credit. will result in more look lower credit scores and constent with the encouragement of responsible credit managemt if the proposa is enacted critical issuers will be forced to adjust to new risk by reducing credit lines, tightening standards for new accounts and raising a pr is for all consumers including the millions who paypr on time. how would you respond to that? >> we've heard this before. we heard thisyo when congress passed the card act. the banking association and industry is going to say we're going to have to raise interest rates to take care of this. we're going to a stringent and more particular about who has credit and buy with the cfpb what hurt the very people the kind of want to help by denying them access to credit? a study for years after, four years after the card act suggest that the industry and banks and card issuers that not raise interest rates. they did that becom

he asked the american bankers association in october of 1932 instill a feeling of assurance in their clients. he appealed to the bankers to improve their borrowers courage and attitude and in december, he advised congress that the best contribution government could make to economic was to encourage what he called the voluntary cooperation of the community. meanwhile new manifestations of what hoover called frozen confidence were appearing in the autumn of 1930. a growing of significant american banks began to fail. it was now apparent that the slump was not a typical transitory recession. it was something worse. in 1931, the pace bank failures quickened, abetted by a deepening crisis in europe. in september, turmoil abroad took a stunning turn when great britain was forced to abandon the almost gold standard standard. britain's decision triggered financial tsunami in the united states, fearful that the u.s. dollar would be the next currency devalue many foreign depositors rushed to withdraw their holdings in the form of gold from american banks. many domestic also sought safety by re

. >> reporter: paul is the senior vice president of cyber security and risk at the american bankers association says that paper checks are one of the financial system's weakest points. would you say every single bank is experiencing this right now >> i think that would be a legitimate statement. >> reporter: in 2021 banks reported nearly 250,000 cases of check fraud nationwide but by 2022, that number skyrocketed to nearly 460,000 cases. that's an 84% increase in just one year >> it's concerning it really is. >> reporter: in many cases, checks are stolen out of blue postal boxes like this one then crooks will change the recipient's name and the dollar value of the check using forgery techniques next, they'll open an account at a bank in a phoney name and hire someone to deposit the check that's what happened here. this surveillance video shows an elderly homeless man depositing a fraud lept check that was cashed for nearly $3,000 organized games are using technology like telegram to organize thefts, connecting those who have stolen the checks with people that will walk into banks and deposit th

they spotted that and we went to the american bankers association. >> what is the total cost to the banking business >> that's the big question we weren't able to answer yet the bankers association knows this is thousands and thousands of cases we don't know the total amount of the fraud it could be hundreds of millions of dollars >> eamon javers. was there a big check you saw in the investigation? >> the big egest one we saw was the receipt bragging to his buddies. we got $22,000 here in one hit you know, you do that again and again and it adds up >> eamon javers, i appreciate it congratulations. nice story >> you bet >>> when we come back, reaction to rising tensions with the united states and china. we will talk about the impact for investors right after this >>> during the month of february, we are celebrating black heritage through the stories of some of our cnbc teammates, contributors and leaders in business. here is the cnbc control room operations director. >> what i'm really proud of it how jamaican folks persevere we know how to survive we take the small amount of things we have

host: the american bankers association weighed in on this proposal and this is part of what they saidproposl ha consumers by reducing competition and increasing cost of payment. sces ands in contrast with act. credit card issuers wi forced to reduce credit lines, tightening standards, and raising apr's for all americans including the millions who pay on time. how would you respond? guest: we've heard this before. we've heard when congress passed the card act. the banking industry will say we have to raise interest rates, be more stringent and particular about who has access. why would the cfpb want to hurt the people they claim to help by denying them access to credit? a study done for years after the card act suggests that the industry and banks and card issuers did not raise interest rates. they did not become more stringent with giving access to credit, hence them preying on subprime consumers. that study showed the card act saved consumers $11.9 billion a year. the cfpb's proposal has the same effect. it could save consumers $9 billion a year. the only thing the industry is worrie

bankers association saying they support the plan. although some wonder could this backfire? one conservative think tank, the american announced today will expose taxpayers and not help prospective home buyers. this credit easing will cause the surplus of buyers to use their newly minted power to bid up the price of houses, simple economics. this program launches march 20th. >> all right, rahel solomon, thank you, as always. >>> this just in, the defense department has released this photo of the suspected chinese spy balloon from earlier this month. >> cnn's natasha bertrand joins us now. tell us more about this picture. >> reporter: we had actually reported first earlier this photo had basically been kind of legendary in the pentagon after it was first taken by this u2 plane pilot who had kind of flown past this moon and taken a selfie with it and as you can see in the photo you can actually see the shadow of the plane in the balloon itself so it's a very cool photo. what we're seeing also probably the clearest image to date we have seen of this massive chinese spy balloon, the bottom part of that balloon there that

>>american bankers association weighed in on this proposal asin is part of what they said think the extre proposal for harm them by increasing cost of credit, itt will be more late payment, lower credit scores and inconsi with the encouragement of responsible credit management of the puzzle is enacted, credit card issuers will be forced to adjust to reduce credit line, tightening standards for account and raising a pr for all consumers including millions paid on time. how you respond? >> we have heard this before when congress passed the car act association and the industry will say will have to raise interest rates to take care of this be more stringent and good about schools and why they want to hurt the people they claim they want to help by denying access to credit? the city for years after this act suggests the industry and bank did not raise interest rates, become more stringent and access on consumers. 900 billion a year so we see this proposal because consumers, 9 billion a year end the only thing you should be worried about is not having that question at the endnd of the ye. >> i