Financial Markets:

Federal Reserve Board Opposition to Credit Card Interest Rate Limits

GGD-87-38BR: Published: Apr 7, 1987. Publicly Released: Apr 7, 1987.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO evaluated the soundness of congressional testimony that a Federal Reserve System (FRS) official gave on proposed legislation to limit credit card interest rates.

GAO found that FRS is opposed to such legislation because it believes that: (1) financial markets distribute credit more efficiently and productively in an unregulated environment; and (2) reasonably competitive conditions exist in the credit card industry despite a lack of variation in credit card interest rates. GAO also found that: (1) the information FRS presented in its testimony was factually accurate and it used the underlying data logically to support reasonable arguments; and (2) the survey FRS uses to acquire its data may be flawed because participation is voluntary and there are differences in operating characteristics between participating and nonparticipating institutions.

Jul 25, 2016

Jul 5, 2016

May 6, 2016

Apr 21, 2016

Apr 18, 2016

Apr 12, 2016

Mar 28, 2016

Mar 8, 2016

Feb 16, 2016

Jan 27, 2016

Looking for more? Browse all our products here