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Prof. Adam J. Levitin Georgetown University Law Center June 11, 2008

Mounting Household Debt, Lending Practices, and Legislative & Regulatory Responses Federal Reserve Bank of Cleveland 2008 Community Development Policy Summit. Prof. Adam J. Levitin Georgetown University Law Center June 11, 2008. Americans’ Savings Rate.

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Prof. Adam J. Levitin Georgetown University Law Center June 11, 2008

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  1. Mounting Household Debt, Lending Practices, and Legislative & Regulatory ResponsesFederal Reserve Bank of Cleveland 2008 Community Development Policy Summit Prof. Adam J. Levitin Georgetown University Law Center June 11, 2008

  2. Americans’ Savings Rate Source: NIPA--U.S. Dept. of Commerce, Bureau of Economic Analysis, Table. 2.1, Line 34. FOF--Fed. Res. Statistical Release Z.1, Table F.10, Line 46.

  3. Financial Obligations Ratios(Debt Service to Disposable Personal Income) Source: Federal Reserve; U.S. Dept. of Commerce, Bureau of Economic Analysis; Author’s Calculations

  4. Financial Obligations Ratio (FOR)Hypothesized Without Mortgage Bubble Source: Federal Reserve; U.S. Dept. of Commerce, Bureau of Economic Analysis; Author’s Calculations Assumes Mortgage FOR from 2001 on at 10 year historical average and 1:1 increase of revolving debt to decrease In mortgage debt and a 3.73:1 impact revolving:mortgage FOR exchange.

  5. Nonmortgage Interest Payments per Household Source: U.S. Dept. of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, Table 2.1, Line 29

  6. Growth in Revolving Consumer Debt Source: Federal Reserve Statistical Release G.19

  7. Effective Interest Rates by Card Type(includes penalty rates and fees) Source: CardData.com (subscription data source)

  8. Card Issuers’ Net Interest Margin(Interest Rate of Card Loans Minus Cost of Funds) Source: FDIC Quarterly Banking Profiles, Net Interest Margin by Asset Concentration Group

  9. Declining Interest Free Grace Periods Means Less Benefit to Creditworthy Cardholders Source: CardData.com (subscription data source)

  10. Growth in Late and Overlimit Fees Source: CardData.com (subscription data source)

  11. Growth of Securitization of Revolving Debt Source: Federal Reserve Statistical Release G.19 (not seasonally adjusted)

  12. Card Issuer Annual Pre-Tax Profits Source: CardTrak

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