AOC and Sanders propose a government run bank piloted through the USPS

New York Rep. Alexandria Ocasio-Cortez sat down with Vermont Sen. Bernie Sanders for a chat about banking services and credit card card interest rates, which led to them proposing a government run not-for-profit public option for banking.

And they both think it should be piloted through the United States Postal Service.

“We should have a not-for-profit public option for basic banking services, and we should be piloting these projects through the U.S. Postal Service,” Ocasio-Cortez said.”

Sanders then added, “We have got to move towards universal banking through the USPS. You got post offices in almost every community in America– they should be available to provide basic banking services.”

And when talking about credit card interest rates, well, they want to change those too because “There is no reason a person should pay more than 15% interest in the United States.”

“The Postal Service already cashes Treasury checks and issues money orders. The USPS should fully exercise its existing statutory authority and implement pilot programs offering affordable financial services, including ATMs, paycheck cashing, bill payment and electronic money transfers in post offices,” they concluded.

So, they are introducing legislation to fix it. According to a statement on Sanders’ web site, The Loan Shark Prevention Act will “combat the predatory lending practices of America’s big banks and protect consumers who are burdened with exorbitant credit-card interest rates.”

“The reality is that today’s modern-day loan sharks are no longer lurking on street corners breaking kneecaps to collect their payments,” said Senator Sanders. “They wear three-piece suits and work on Wall Street, where they make hundreds of millions in total compensation and head financial institutions like JPMorgan Chase, Citigroup, Bank of America and American Express.”

“Under the legislation we are introducing today, we would establish a national usury rate to make sure that no bank or store in America could charge an interest rate higher than 15 percent,” Sanders concluded.

Read the bill summary here.

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