and by eliminating one metric in the credit rating, it may cause credit agencies, credit rating agencies, to use other metrics, or proxies that are less accurate and which could actually hurt low income populations more. these kinds of downstream effects wouldn't be shocking given that the entire effort to micromanage credit ratings is coming from an agency that has no expertise on complex medical billing and health care systems. it should remind us that intervention into the market, no matter how noble advocates may think they are being, we'll have consequences, usually unintended consequences. and second, intervention should come after careful deliberation by the peoples representatives, not tic tacs from unelected bureaucrats. thank, you mister chairman. >> thank you sir. i will introduce five witnesses, robin, king of former second grades teachers assistant in cleveland, that works part-time in volunteers when she's not caring for her family. miss king uses her voice to shed light on the terrible toll that medical debt is taking on average americans. and restored is the executive dir

credits are limited. the state out only to the highest priority activities and in fact they have to compete to invest in us. and if for any reason compliance is not followed through those credits are recaptured so tremendous discipline. the state administration, misspell and her colleagues have done an amazing job in sorting these resources. we have from his confidence in them as stewards and that's why neighborhood wrote homes would rely on them. they areboth targeted and flexible . so there targeted but flexible in how they refine and the tremendous economic benefits. >> thanks so much for that. one of the things i find unified about the housing portability crisis and i like to focus on these unifying issues. the chairman was kind to mention the china innovation hill at the u.s. senate. one reason i was working on that is during this time of finalize politics , we can wi rally around solving difficult challenges together across political files, across political philosophies. and this housing affordabili

and the members are the primary investors of the tax credits. so today we have bad news and good news. the bad news of course is tremendous cost and increasing the availability. according to the national natiol association of realtors, the prices rose nearly 20% last year but housing is not just the casualty of inflation. it's a cause of inflation even in 2020 they went up 11% when the cpi was rising 1.4%. so, building housing is essential for me to get long-term inflation challenges under control. last october about half of all americans said affordable housing in their communities was a major problem and that exceeded what they cited for other important problems like drugs, crime and covid-19 health and economic consequences. the good news is we know what to do. the low income housing credit is widely considered the most effective and successful united states policy to produce affordable rental housing ever. 3.6 million units so far and about 130,000 annually. that's virtually all of the affordable production over the last 35 years and it's eq

and by eliminating one metric in the credit rating, it may cause credit agencies, credit rating agencies, to use other metrics, or proxies that are less accurate and which could actually hurt low income populations more. these kinds of downstream effects wouldn't be shocking given that the entire effort to micromanage credit ratings is coming from an agency that has no expertise on complex medical billing and health care systems. it should remind us that intervention into the market, no matter how noble advocates may think they are being, we'll have consequences, usually unintended consequences. and second, intervention should come after careful deliberation by the peoples representatives, not tic tacs from unelected bureaucrats. thank, you mister chairman. >> thank you sir. i will introduce five witnesses, robin, king of former second grades teachers assistant in cleveland, that works part-time in volunteers when she's not caring for her family. miss king uses her voice to shed light on the terrible toll that medical debt is taking on average americans. and restored is the executive dir

executives are major credit card and -- ask card companies announce a fee hike to swipe or touch credit debit cards. this hearing before the senate judiciary committee is two hours. good morning, this hearing will come to order. american consumers today are rightly worried about inflation and rising prices for the goods they buy. today we are going to talk about a hidden fee that fuels the fires of inflation across america every day. what they may not know is this wifi is contributing to the problem of inflation. when swipe fees on credit and debit card to go up, as they just recently did, it increases inflation. consumers ultimately pay the price. ironically, this journey for me started in this very room 16 years ago. arland specter was the chairman of the senate judiciary committee. he called a key meeting on swipe fees and interchange fees. i intended because i was not familiar with those terms. i heard for the first time wettest life we was. the fact that i use my debit card and credit card a swipe fee was being charged to the retailer that i was ultimately paying. and then i learne

senators cardin and portman established a tax credit models after the highly successful housing credit. now simply put, the housing c crisis simply will not get better if congress does not act. my last few seconds it would jut urge both and elevate my appreciation for this committee and we need congress to act. the action is going to come post this committee and what decisions we will be able to make in service to the american people per appreciate your time precooked so well said ms. bell thank you. let's go next. >> good morning. thank you for the opportunity to testify today. every american deserves access to safe, decent and affordable housing. even after over 40 years in business, i still enjoy nothing more than handing over keys to the first-time buyer. but delivering an entry-level product is difficult. 69% of american households cannot afford the median price new home. but a year ago, nearly one quarter of new homes were priced under $300,000. today it is 10%. we also face the challenges with the minority home ownership opportunities, of households under the age of 35, which is

credit cards too. wouldn't some of the most credit challenged people be hurt the most if you have to make a business of population. >> to answer your question, interchange has been priced regulate by governments around the world's and other markets. you see a narrow weighing of issuance in those countries. those fees to those consumers end up going up, and the features and benefits go down. we think that would be a horrible outcome. >> that is correct. we have been very sensitive. we have a lot of retailers across the nation. a lot of the recipients of paycheck protection, and a number of other things. we have implemented them in response to the impact of covid was to recognize that we have a lot of businesses out there on the bubble. and i know that your sector is struggling mightily with some of the shutdowns and other things we have been dealing with. but, let's assume that the fees were cut in half. would that solve all of the problems in your industry? the answer and laugh is all i need. if we are

in other parts of the world, credit is still available. credit cards are still used. there are still rewards, all those sorts of things. i also wanted to clarify that we, as merchants, and laura was clear about this in her testimony, we have not asked for a cap on credit card fees. there's a different market where we think there needs to be competition. competition and market prices will help us here in ways that get the types of problems you're worried about. >> can i ask a closing question? i would be interested, in mr. mierzwinkski, mr. kim, mr. kantor, now that we have a decade of experience in capping fees for debit, do we know whether the imposition of interchange fee caps led to lower prices for consumers? and better access for lower income borrowers, consumers, in terms of low-cost banking services? mr. mierzwinkski, if i might, mister chairman? >> thank you for the question, senator. i think there are a lot of pressures on banks to lower the prices and to provide better services to lower income consumers. a lot of that is being done through partnerships betwe

even worse if you claim the earned income tax credit. probably one of the greatest, greatest tools that we have in fighting poverty in the united states of america. the irs is four times more likely to audit you if you are getting earned income tax credits. why? because it's quicker, it's less expensive. the irs seems to see poor americans the same way the harlem globetrotters view the washington generals. the irs goes after people who can't easily defend themselves. you got it, and no use mincing words. you come to the point, you want to change things, there's nothing to hide. i asked the gao to study, i asked them to study the audit books and the trends today. today mr. james mctigue, did i pronounce it correctly? thank you, james. the director of strategic issues at the g. a. o.. were we report on g. a. o.'s finding. we ask for this, we got it today. as a little movie preview, take a gander at the graph behind me showing nose diving audit rates of the superrich in the last decade. the purpose, and i'll say this again, of me being here

and a tax credit for up to $7,500 if those vehicles were made in america. this investment in environmental justice is real. it also provides tax credits that will create thousands of good paying jobs, manufacturing jobs, on clean energy construction projects, solar projects, wind projects, clean hydrogen projects, carbon capture projects, and more, by giving tax credits for those who build these projects here in america. let me be clear. this bill would be the most significant legislation in history to tackle the climate crisis. and improve our energy security right away. give us a tool meet the climate goals that we've agreed to by cutting emissions and accelerating clean energy, a huge step forward. fourth, this bill requires the largest corporations to begin to pay toward their fair share on taxes. by putting in place a $15% -- a 15% corporate minimum tax. i know you've never heard me say this before, it will come as a shock to you, but 55 of the fortune 500 companies pay no federal income tax in 2020. heu only heard me say that about 10,000 times. but t

credit, or financing, was solid in the quarter. we are very pleased with that performance. >> is it sustainable? >> there is no reason to think the trends from the first half won't repeat in the second. that said, the market needs a direction, and that has not been as present in the late june-early july period as the rest of that year. the markets are waiting for the fed and we will see how the town develops from here. >> your guidance around targets, you have recommitted to some, and changed others. you say it will be more challenging to deliver on some of your targets, how would you like market to receive that message? >> we see challenges and the second half and we have reflected that in our outlook. we are going into this from a provision -- a position of strength. our cost-income ratio has dramatically changed from three years ago but we are recognizing that we have had some setbacks in the first half that were out of our control. and we continue to see pressure in the second half on our expenses. but the important thing is th

mctigue: they do claim the earned income tax credit. mr. rice: the vast majority the ones that get audited that's under $25,000 is because they claim the eitc, correct? mr. mctigue: i'm sure the reasons vary. mr. rice: the audit we're talking about is not like i.r.s. agents knocking on your door. it's a correspondence audit, right? mr. mctigue: it is a correspondence audit. i know from personal experience getting a letter from the i.r.s. is a bit unnerving. so i want to just count the fact that it's simply a letter. mr. rice: i got it. i want this to be fair -- across the board it needs to be fair. you yourself said -- what are the error rates on eitc? what are the error rates? mr. corbin: i -- mr. mctigue: historically it's been in the 25% range. the most recent fiscal year that amounts to $19 billion in improper payments. mr. rice: and we heard the same thing from state attorneys general. we heard the same thing from states -- secretaries of state. we heard the same thing from benefits coordinators within state agencies this program is ri

i appreciate you being with us to talk about tax credits. just in case you are still not convinced that accountants and tax policy people are cool, we will leave you with josh rapping about tax. >> josef newgarden has done it at road america! >> awesome job out there. >> the level of competition is so high, the

the credit for is a case in point. the investigation docket disappeared out of the offices of the national prosecuting authority. now typically with a docket disappears, we know why it disappeared. it's because somebody doesn't want to see justice done in that case. and the fact that it has disappeared from the headquarters of the national prosecutor authority is deeply alarming. and yet we see no alarm being expressed by the national prosecuting authority. we had come to the cape town, central police station, obviously to come and open a charge of theft against the national prosecuting authority. when mister kilometer tried to open up a case, he was ignored for more than a year. he begged the investigating officers to look into why that docket was removed and has never been found. once we came here, we were then told that we can't really open the case. we had to write to the commission of police and said that if you want to open up a docket, we'll see you in court. finally, after intervention from our lawyers, and fro

we had the _ credit does pay. it is not a lot at all. we had the charity - credit does pay.e they are paid at a lower rate. what do you think of their suggestion that these are the two things that need to go up? i suggestion that these are the two things that need to go up?- things that need to go up? i have never understood _ things that need to go up? i have never understood the _ things that need to go up? i have never understood the lower - things that need to go up? i have never understood the lower rate | things that need to go up? i have i never understood the lower rate for the under 25 because our expenses are no different. we don't suddenly start eating more food in return 25, we don't suddenly start having a phone is charging more. there is no difference to our electric, rent, food... it is exactly the same, but for some reason, someone in government decided that we do live cheaper somehow and it just government decided that we do live cheaper somehow and itjust makes no sense at all. i would love to see how they worked that out. but when you have people over the

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as your credit profile improves, your credit card companies don't reduce your interest rate unless youow is the time to call that number on the back of your credit card, the 1-800 number and ask for an interest rate decrease given the improvement in your credit profile. that's tip number one. >> okay. let's hear tips two and three. >> tip number two would be while you're at it, also ask your credit card company to change your credit card due date. your due date is typically based on some random date based on when you applied for credit, when you were the most liquidity constrained, they can change that. based on your income profile change the date so it matches your income, the 1st, the 15th, the 30th, whatever works best for you. and the last tip is once you have that monthly due date that works for you, because credit card interest is compounded on a daily basis and just in the last three months interest rates on credit cards have increased upwards of 60 basis points, you want to pay off your credit card as frequently as possible. so even if you are paying down $200 a month or $100 a

you think about you have a fairly large credit business, a private credit business, $71 billion plus so we are mindful of that. everybody is impacted from inflation. i think we are pretty darn focused on the portfolio side. i think it just really means being a little more selective as a relates to new deployment. kriti: you mentioned caution a couple times. what assets would you avoid in this market? daniel: two things, one, i do think opportunity is real for those of us who have kind of capital to invest. you mentioned the fund we raise, the 2.1 billion dollar fund. a large focus of that is in consumer and mortgage finance space. you think about the consumer and obviously we are worried about and thinking about the consumer. that said, we are pretty open to business. we are probably skewing ourselves more to are things i gotta loans, like consumer loans , focused on the home improvement space, maybe staying more away from the regular, unsecured product or thinking about higher credit score and credit spectrum. >> we are about to get big bank earnings in the next couple days, and it

is credit suisse a zombie bank?and his team and what they inherited, it is amazing how bank of america has gotten back to book. jonathan: on the mainland, they waited 11 years for a rate hike, eight years to get away from negative interest rates. tom: to me it is all cultural. jonathan: we are getting that but doing it into weakening. tom: what is the differentiator at barclays? what is differentiator of the mess that ab and amaral became. with digital banking, jp morgan of 11% on mobile customers. jonathan: they have to spend to make that transition. tom: spending is everything. they will go by way of putnam if they don't get it done. when i was a kid, the exchange was open saturday and grandpa would take me down and they had the paper tape and the old geezer with the tape going through his hand and the spittoons and the whole thing. the dow jones industrial average was the only thing they quoted. jonathan: that makes sense. i hundred years later, we call it the s&p. -- 100 years later, we call it the s&p. tom: and

a you re, sac is an advisor to be a credit defense minister. i asked him about the significance of the loss of this chance for your crane and for your credit forces, temporary loss of any c, c, no matter how big or small temporary loss of every meter battery is significant. and this is why we, every time we have to temporarily leave certain areas or certain cities, we insist that we will be back on our president says that the gradient armed forces are committed to the occupied all the temporary occupied series. of course, this is chance is the last large city it will ask us what, what has to be noted is that today ukrainian armed forces are still in the region. so even though it is a very small part of aspiration, but according to the records of the local parties, great in our forces are still a small part of land. right? and this, of course, comes with the loss of a matter of poland, significant ways of beast and ukraine. is this wall moving russia way? we don't believe this would be the right way because there are other areas of your crying w

and improve credit scores. this would help them unlock quality financial products. when renters encounter hardship and cannot afford to pay rent we also pay them with their interest microloans to keep them and their families in their homes. investments and never spent text, according to forbes, u.s. contact is a combined $162 billion. in 2021, a venture capital investment reached $35 billion. what male led start ups received over a 70% of investments compared to 1% for black founders. this fact shined a light on the realities of investments in intact landscapes -- in fintech landscapes. i offered three thoughts on what obstacles persist. people stay with people that they know it. it is 5% of patient investors are women, black, or capitalist. they understand the mission and generate unrealized return from being with us since day one. due to the implicit or unconscious bias, many investors do not consider people of color to be entrepreneurs. i spoke to 326 investors before we had a one bit on us. investors strugg

up the credit quality.'m also not convinced that this gives you enough advantage as an investor because those are flowing through to the borrower as well. you are getting a dramatic increase in borrowing costs. i think it probably pays you 13% and a little risk-free rate around 2%. jonathan: kathy jones, gregory peters, troy gayeski sticking with us. the week ahead featuring fomc minutes and we have payrolls friday around the corner. from new york, this is bloomberg. ♪ jonathan: live from new york city, i'm jonathan ferro and this is "bloomberg real yield," time for the final spread of the week. markets closed monday for independence day. a long weekend coming up stateside. the mice from china, the eurozone, the united states around the week. fez beacon then we close out the week with payrolls friday. just open jp morgan, mike rowley downgrading economic growth. a economic data this week leading to revised down tracking on real gdp growth down 2%. a protection for real gdp growth to percent from 1%. the lan

credit is fine the margins were up a little bit. the problem is that things are too good the bank industry, like some other industries, need a cycle to make money. we haven't had a cycle in a long time because the fed has held it up so my hope here is that we have a credit cycle, we have a rate cycle, we have a real rate inversion cycle, we have a liquidity cycle, and that allows people like me to actually buy stocks that will go up after that's over as opposed to sitting here with everything is good but the stocks really don't go up when things are really good in this industry. >> so to be clear, you're buying now on hopes that the cycle turns again? >> well, the truth is i hope things get worse because then stocks will go down and i'll be able to buy them when everybody is afraid, just like in the pandemic, just like in '87, '92 and the financial crisis of 2008 that's the time to buy financials when everything is in trouble and you buy the best managements. obviously morgan stanley, jpmorgan are at the top of that list you buy the

manus: where are we in credit?ncreasingly cautious is a gracious way of saying that we are not worried yet. how cautious on credit, and if so, where? sonja: this comes back to what i have just said. the volatility to be expected in the second half because of these forces that are hitting the market in terms of the growth concern, when it is going to slow and when the hard landing will occur, versus the fact that inflation is far more persistent and potentially central banks have to do a lot more. hence the repricing rates and accordingly, in credit. if you have to be invested, understand where you are going, because we have not even talked about earnings and corporate resilience yet. that is a key feature when you want to engage in credit records -- markets, versus do you really want to go in an environment where there are so many moving goalposts. dani: manus and i just broke erickson earnings a moment ago, i miss on net margins. we saw delta earnings, they are very optimistic in their strength, but on the bottom

start with the credit suisse story.hat do you make, what's your faith and the ability of this swiss lender to turn things around. any sign of optimism in the numbers you're seeing or the commentary from the new executive suite. >> the numbers are dire and they call that a lot of one offs. most of the one offs will become two and three such as mitigation restructuring. in sort of leverage financed. that addresses the issue, of is another restructure. this is going in the crosshairs of a very challenging market. irrespective of the fact credit suisse is heavily geared to areas like high-yield leverage amounts which are more about that right now. the rest of the investment banking arena is clearly slowing down materially. deutsche bank themselves highlighted challenges per year entering a restructuring at exactly the wrong time which is often the classic case with investment banks. they have to restructure at that time. and credit risks are an issue. >> i wanted to focus on what they want to be. to they want to be ubs and

lost card have a credit we will be looking for 145 days without interest. that's all, and the free service of renaissance credit bank is all the possibilities. i'm in a club where millions of women already know how to control varicose veins. detralex works at any stage of varicose veins and acts on the cause of edema in severity and more from the inside of detalex. there are places that we know well. and where do we go for the same then the very taste the very smile of envy that was once and will be remembered forever for a random stop at the same table where couples were walking and quality behind which dozens of suppliers stand and stand behind the wall name changes love remains the same 162,000 people are already waiting for millions to say delicious and delicious again point of billions of rubles every month among the tickets purchased on and in the application we will raffle off an apartment more tickets more chances. well you say don't, well they are so delicious from meat in their own farms. well three nights later than her and you won't stop me with

what is the dynamic with credit versus full faith and credit. lisa: detention is very strong. -- the tension is very strong. you have seen people piling back into credit. you saw a bid into corporate debt. how long can that last given the volatility in the benchmark yields? how much can you really go into some of these riskier places if you are getting such massive moves in full faith and credit in one of the most liquid markets in the world? tom: is jp morgan's guidance the big moment of the week, the first look by the mega bank? jonathan: looking for the equity report hello but later? tom: i mean the ceo report. jonathan: i thought you meant the equity strategist report a little bit later that would typically get. we will find out. very important to get guidance from a banker who told us he -- from a bank ceo who told us a hurricane might be coming. they are privately positioned to be talking about at this. there is one person that sounded a little more bullish on friday. it was rick rieder of black rock. i will share the quote with you. "if w

and improve credit scores. this would help them unlock quality financial products. when renters encounter hardship and cannot afford to pay rent we also pay them with their interest microloans to keep them and their families in their homes. investments and never spent text, according to forbes, u.s. contact is a combined $162 billion. in 2021, a venture capital investment reached $35 billion. what male led start ups received over a 70% of investments compared to 1% for black founders. this fact shined a light on the realities of investments in fintech landscapes. i offered three thoughts on what obstacles persist. people stay with people that they know it. it is 5% of patient investors are women or black venture capitalists. they understand the mission and generate unrealized return from being with us since day one. due to the implicit or unconscious bias, many investors do not consider people of color to be entrepreneurs. i spoke to 326 investors before we had a one bit on us. investors struggle to relive the

racking up credit card debt.but i think credit card debt is next. charles: upper middle class is taking the biggest brunt, taking face value the excess savings that they keep talking about. households between 75,000, 127,000, take a look at chart, folks, they are saving less. they have less money saved than two lower income brackets. seems like they're trying to put kids in certain activities, save up for college, doing certain things not only they live the american dream hadley, but somehow they're invested in their children living it, and they're taking the biggest squeeze here? >> they're hitting inflation at groceries and at the gas pump. maybe not the families facing specter of having their electricity turned off if they don't pay their bill. they're also getting hit on the stock market side. these families might have enough money for investments here. they're looking at retirement account. they're feeling pessimistic. consumer sentiment is done with this group as i mentioned the ripple, trickle effect of th

credit cards, reaching record highs in april.ot necessarily bad, experts say. but kristen holt, president and ceo of green path, works with people who are often overwhelmed by credit cards, and she's seeing signs that's coming again. >> people who called us in 2021 on average had about $10,000 in credit card debt. so people on average calling us this month, it's at $14,000. >> that's significant. that's a lot of money. >> yeah, so it's 40% higher than it was last year. like that to me is like, holy cow. >> reporter: kristen says in this financial environment, credit card debt is a compounding problem. today families who struggled before the pandemic may be struggling again. but kristen worries the credit crunch could expand into families who thought they had control of their debt. >> these are not costs that are super easy to cut, you know, just putting less gas in your car will only get you so far. >> right. >> reporter: evan mcmorris-santoro, cnn, detroit. >> evan, thank you so much for that. >>> so just how much pressure was k

a tax credit for up to $7500.00. if those vehicles were made in america. this investment environmental justice is real and also provides tax credits that will create thousands of good paying jobs, manufacturing jobs, and clean energy construction projects, solar projects. when projects clean hydrogen projects, carbon capture projects, and more by giving tax credits for those who bill. these projects here in america, and let me be clear, this bill would be the most significant legislation history to tackle the climate crisis and improve our energy security right away. and give us a tool to meet the climate goals that are set that we've agreed do by cutting emissions and accelerating clean energy a use step forward forth. this bill requires the largest corporations to begin to begin to pay toward their fair share and taxes by put in place a 15 percent corporate minimum tax. now, i know you've never heard me say this before. will come as a shock to you, but $55.00 for the fortune $500.00 companies paid no federal income

>> credit is a concern. we want credit. we watch how it trades. the other thing is, if we are right on this, cyclicals are tied to high-yield. if the earnings go down, if there is a derating, you should see that on credit. one rule reinforces the other, and is not a great situation. they may think you for being on. we are seeing they have cyclical multiples. these are low multiples, where things are bad, and counterintuitively, they are higher. how much do you think this is going in, or they will come down, so it is and what we think it is? >> okay, don't normally talk about stocks. i don't want to trip myself up. today, i looked at x. it is trading at two times earnings. with the market is saying is, those earnings, in 3 to 6 months will be much lower. the multiple you're looking at is five times of what it is. i cannot repeat us enough, it is late in the cycle. these ones are hard to defend. earnings will be rated down. this is a place we would stay away from. this is the place that we would rotate out of. >> i to do a double take when i read th

credit quality is strong. you do not see some significant