« When an Oath of Poverty (or Waterboarding) Isn't Even Enough ... ! | Main | This, I Don't Believe »

Postal Banking

posted by Adam Levitin

I've got an op-ed about postal banking in today's American Banker.  Basic point:  there's a tension between doing postal banking to generate revenue for the Post Office and doing postal banking for financial inclusion.  But it's an idea worth exploring.

Comments

Mehrsa Badaran, a professor at the University of Georgia, argued for postal banking in a 2012 paper that was later published in the Emory Law Journal. See http://ssrn.com/abstract=2056593,

The PRC ruled in 2008 that prepaid cards exceed the USPS's statutory authority (order 154), so it would require an act of congress. I don't think anyone would dispute that that is vanishingly unlikely.

Good point JPE. It is interesting to note as Order 154 does, that until 2003, the USPS did offer some prepaid cards (a product had to be offered in 2006, however, to be grandfathered in). I wouldn't expect Congressional action any time soon, but stranger things have happened, and when House members are faced with job loss in their districts from postal branch closings, they might decide that reelection comes before ideology.

Interesting stuff. Is it just me, or is the survey that runs alongside your article remarkably biased?
"Would a postal banking system pose a serious threat to banks?
Yes — A subsidized bureaucracy is the last thing the industry needs to compete against these days
No — The post office can’t even deliver mail efficiently, much less banking services
Depends — The post office would be welcome if it lowered the pressure on banks to take on money-losing customers"

Seems like all of those answers strongly lean toward the perspective that "the current banks are good and deserve all of the love and support we can give them in their never-ending struggle against GOVERNMENT."

Maybe I'm imagining things.

The comments to this entry are closed.

Regulars

Occasionals

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, visit http://listserv.uiuc.edu/archives/bankr-l.html and click on the link for "Join or leave the list." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad