THUMB AWARD BANK BILL NOT IN VOTERS’ INTEREST

Thumbs Down to the Texas Legislature for approving a bill that would raise the interest rate ceiling to 24 per cent. The bill is strongly supported by the huge bank holding companies, which now can charge only 18 per cent on loans. Backers of the bill say it will allow the marketplace to set interest rates. But that’s not the whole story. To truly free the market, the state would have to remove the interest rate ceiling. The legislature can’t do that without voter approval, and they know they won’t get it. The bill, which has been signed into law by Gov. Bill Clements, will give the state’s banking giants the chance to gouge the public-legally.