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Nobody likes paying fees. A fee, however, is a transparent way to reflect the price of something. And in a market economy, prices convey vital information that consumers and producers use to make good decisions. A rise in the price of apples tells producers that consumers want more apples. This prompts more apple production (and eventually, lower prices). And so when political interference keeps prices from fluctuating freely, the result is inefficiency and waste.

The Consumer Financial Protection Bureau (CFPB), calling the prices of bank overdraft protection “junk fees,” now proposes to interfere with these prices.

We’ve been down this road before. Last year, the CFPB proposed capping credit card late fees at $8 as part of President Joe Biden’s populist appeal to consumers who dislike this cost, which is obviously everyone. The problem, as I and many others explained at the time, is that late fees encourage timely payment, and their practical elimination leaves lenders unable to offset the risk of working with people who have lower credit.

The result will be fewer lines of credit available to those who need credit the most. But that’s a difficult outcome for most to see compared to the tangible benefit of lowering fees. Even consumers denied credit won’t know what or who to blame, so it’s no surprise that CFPB is expected to finalize the late fee rule any day now.

The next CFPB price control scheme would cap overdraft fees at levels as low as $3 per overdraft transaction. Commenting on this rule, Biden sounded perfectly populist: “For too long, some banks have charged exorbitant overdraft feessometimes $30 or morethat often hit the most vulnerable Americans the hardest, all while banks pad their bottom lines.” He added, “Banks call it a serviceI call it exploitation.”

I get it. I remember the annoyance I felt when I was charged such fees. However, I reminded myself that it was the price to pay for not having one of my checks bounce or a debit card payment declined. It’s fair to wonder whether most of the people proposing these rules have ever had a checking account balance low enough to need the overdraft cushion.

In fact, overdraft protection is an optional, opt-in service that allows consumers to spend money they don’t have at the bank’s expense. Purchases are approved that would otherwise be declined for lack of funds. For low-income consumers, this service is sometimes vital. And indeed, consumers report by wide margins that they are glad it exists even though it naturally comes at a cost.

Thankfully for all of us, CFPB bureaucrats agree that banks should charge a fee. Unfortunately, they think they know best what these fees should be. They think they know the exact costs of honoring charges for customers with negative balances better than the banks do. And remember, because banking is competitive, any bank that charges excessive overdraft fees will lose customers to banks that don’t. That $30 fee per overdraft transaction is the price that emerged among the competitive forces that keep prices lower than they could be.

Because of bureaucratic interference, many who see overdraft protection as preferable to other short-term credit options, such as payday lending or high credit card balances, will have fewer choices as some banks decide that the service isn’t worth offering at the price deemed appropriate by government officials.

Banks might go even further. Given the slim profit margins they earn on small bank accounts, it’s possible that the loss of overdraft protection revenue results in some simply abandoning the very customersthe least well offwhom interventionists claim to be protecting.

This frequent political problemfailing to consider how policy interventions alter incentives in ways that produce bad outcomesextends well beyond the realm of finance. The United States education system, for instance, is collapsing in part because school boards across the country have decided that graduation rates were the most important metric to track success and are now frequently used to determine funding. So school administrators responded by boosting graduation rates in the simplest and most obvious manner: by making it all but impossible for students to fail. Students, in turn, have largely stopped trying. Graduation rates are up, but learning is down.

Politicians and bureaucrats appear not to be learning much, either. When planners make ham-fisted attempts to alter complex systems or intervene in markets, results rarely match their expectations.

COPYRIGHT 2024 CREATORS.COM.

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Trump-Putin summit: No deal reached to end war in Ukraine

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Trump-Putin summit: No deal reached to end war in Ukraine

No deal has been reached to end the war in Ukraine – but Donald Trump has said there are “many points” he and Vladimir Putin agreed on during their highly anticipated summit.

Following the meeting in Alaska, which lasted more than two-and-a-half hours, the two leaders gave a short media conference giving little detail about what had been discussed, and without taking questions.

Mr Trump described the meeting as “very productive” and said there were “many points that we agreed on… I would say a couple of big ones”.

Trump-Putin summit – latest updates

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Key moments from Trump-Putin news conference

But there are a few left, he added. “Some are not that significant. One is probably the most significant, but we have a very good chance of getting there…

“We haven’t quite got there, we’ve made some headway. There’s no deal until there’s a deal.”

Mr Putin described the negotiations as “thorough and constructive” and said Russia was “seriously interested in putting an end” to the war in Ukraine. He also warned Europe not to “torpedo nascent progress”.

Donald Trump greets Vladimir Putin at Joint Base Elmendorf-Richardson, Alaska. Pic: AP/ Julia Demaree Nikhinson
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Donald Trump greets Vladimir Putin at Joint Base Elmendorf-Richardson, Alaska. Pic: AP/ Julia Demaree Nikhinson

After much build-up to the summit – with the US president threatening “severe” consequences for Russia should it not go well – it was ultimately not clear whether the talks had produced meaningful steps towards a ceasefire in what has been the deadliest conflict in Europe in 80 years.

Mr Trump said he intended to speak with Ukrainian President Volodymyr Zelenskyy and other European leaders, who were excluded from the discussions, to brief them.

Despite not reaching any major breakthrough, the US leader ended his remarks with a thank you, and said he would probably see Mr Putin again “very soon”.

When the Russian president suggested that “next time” would be Moscow, he responded by saying he might face criticism, but “I could see it possibly happening”.

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Trump applauds Putin and shares ride in ‘The Beast’

The red carpet treatment

The news conference came after a grand arrival at the Elmendorf-Richardson military base in Anchorage, where the US president stepped down from Air Force One and later greeted his Russian counterpart with a handshake and smiles on a red carpet.

Mr Putin even travelled alongside Mr Trump in the presidential limousine, nicknamed “The Beast”.

It was the kind of reception typically reserved for close US allies, belying the bloodshed and the suffering in the war.

Before the talks, the two presidents ignored frantically-shouted questions from journalists – and Mr Putin appeared to frown when asked by one reporter if he would stop “killing civilians” in Ukraine, putting his hand to his ear as though to indicate he could not hear.

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‘Fury, anger and disgust’ in Ukraine

Our US correspondent Martha Kelner, on the ground in Alaska, said he was shouting “let’s go” – apparently in reference to getting the reporters out of the room.

Read more:
The moment Vladimir Putin has craved
What we expected from summit – and what actually happened

Trump-Putin summit in pictures
Mapping the land Ukraine could be told to give up

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What we learned from Trump-Putin news conference

A ’10/10′ meeting

During his first day back in the White House in January, Mr Trump had pledged confidently to bring about an end to the war in Ukraine.

But seven months later, after infamously berating Mr Zelenskyy during a meeting at the Oval Office in February, and then stanching the flow of some US military assistance to Kyiv, he still does not appear to have brought a pause to the conflict.

In an interview with Fox News before leaving Alaska, Mr Trump described the meeting with Mr Putin as “warm” and gave it a “10/10”, but declined to give details about what they discussed.

He also insisted that the onus going forward could be on Mr Zelenskyy “to get it done”, but said there would also be some involvement from European nations.

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Trump’s body language was ‘disappointed’

What happens next?

Mr Trump is expected to speak to Mr Zelenskyy, Sir Keir Starmer and European leaders about the talks.

A meeting of ambassadors from European countries has been scheduled for 8.30am UK time, EU presidency sources have told Sky News.

European heads of state and Mr Trump are also likely to have a virtual meeting later in the day.

Despite the US president’s efforts to bring about a ceasefire, Russian attacks on Ukraine have only intensified in the past few months.

On 9 July, Russia carried out its largest aerial attack on Ukraine since the start of the war, launching more than 740 drones and missiles.

Furthermore, Mr Zelenskyy has said Russia is preparing for new offensives.

Ahead of the summit, one of the key commanders of Ukraine’s drone forces told Sky News in a rare interview that there would be no let-up in its own long-range drone attacks on Russia until Moscow agrees to peace.

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What we expected from the Trump-Putin summit – and what actually happened

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What we expected from the Trump-Putin summit - and what actually happened

A warm handshake, big smiles, and a red carpet – this was the welcome for Vladimir Putin as he touched down on US soil for critical negotiations on the war in Ukraine.

There had been much build-up to the summit in Anchorage, Alaska, not least from Donald Trump himself – with the US president having threatened “severe” consequences for Russia should it not go well.

Pic: AP/ Julia Demaree Nikhinson
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Pic: AP/ Julia Demaree Nikhinson

But more than two-and-a-half hours of talks resulted in just a brief news conference with little detail given away – and ultimately, no talk of a ceasefire and no deal on Ukraine reached yet.

Here is what was expected from the meeting – based on information from the White House, Mr Trump and the Kremlin beforehand – and what happened on the night.

One-on-one turned into three-on-three

Russia's Foreign Minister Sergei Lavrov and US secretary of state Marco Rubio also attended the talks. Pic: AP/ Julia Demaree Nikhinson
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Russia’s Foreign Minister Sergei Lavrov and US secretary of state Marco Rubio also attended the talks. Pic: AP/ Julia Demaree Nikhinson

It was thought this would be a one-on-one meeting between Mr Trump and Mr Putin.

Instead, the US president was joined by US secretary of state Marco Rubio and special envoy Steve Witkoff, while the Russian leader was supported by his foreign affairs advisor Yuri Ushakov and Russian foreign minister Sergei Lavrov.

The change seemed to indicate the White House was perhaps taking a more guarded approach than during a 2018 meeting in Helsinki, where Mr Trump and Mr Putin met privately with interpreters. The US leader then shocked the world by siding with the Russian leader over US intelligence officials on whether Russia meddled in the 2016 presidential campaign.

Rolling out the red carpet

Pic: AP/ Julia Demaree Nikhinson
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Pic: AP/ Julia Demaree Nikhinson

Mr Putin was given the kind of reception typically reserved for close US allies, belying the bloodshed and the suffering in the war he started.

The two men greeted each other with a handshake and a smiling Mr Trump even applauded the Russian president as he approached him on the red carpet.

Our international affairs editor Dominic Waghorn, in Kyiv, gauged the Ukrainian reaction to the arrival – and said people were furious at the welcome extended by the Trump team.

Images of US soldiers on their knees, unfurling the red carpet at the steps of the Russian leader’s plane, went viral, he said, with social media “lit up with fury, anger, and disgust”.

He added: “There are different ways of welcoming a world leader to this type of event, and Trump has gone all out to give a huge welcome to Putin, which is sticking in the craw of Ukrainians.”

Any questions?

Pic: Reuters/ Kevin Lamarque
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Pic: Reuters/ Kevin Lamarque

Plenty. But no one was really given a chance to ask.

Ahead of the talks, cameras were allowed inside for just a minute – and while this was enough time for a few journalists to shout some questions, these were ignored by the two leaders.

“President Putin, will you stop killing civilians?” one shouted. In response, Mr Putin put his hand up to his ear as if he could not hear.

In their brief media conference after the talks, Mr Putin spoke for almost nine minutes, while Trump took just three-and-a-half to say what he wanted to say.

The two men then did not stay to answer questions from reporters.

Before the event, the Kremlin said it could last between six and seven hours, but the whole visit lasted about four-and-a-half hours.

‘Severe consequences’

Pic: AP/ Julia Demaree Nikhinson
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Pic: AP/ Julia Demaree Nikhinson

Ever since his inauguration in January, Mr Trump had been threatening serious consequences for Russia should a deal on Ukraine not be reached soon. Just two days after the ceremony, he took to social media to declare there could be “high levels of taxes, tariffs and sanctions” and called for an end to the “ridiculous” war.

In February, he held what he described as a “productive” call with the Russian leader, and about two weeks later he infamously berated Ukrainian President Volodymyr Zelenskyy during a visit to the Oval Office – this one taking place in front of the world’s media.

Read more:
Trump and Putin agree on ‘many points’ – but give little detail away

The moment Vladimir Putin has craved
Trump-Putin summit in pictures
Mapping the land Ukraine could be told to give up

In July, he started to set deadlines for an end to the war – first giving Mr Putin 50 days and later reducing this to “10 or 12 days”, before announcing the summit last week.

Yesterday, Mr Trump insisted his Russian counterpart was “not going to mess around with me”.

However, while both men insisted the talks were “productive”, it is not clear what agreements have been reached, and whether Ukraine is any closer to finding peace. The word ceasefire was not mentioned by either leader. Instead, they praised each other, with Mr Trump describing Mr Putin’s remarks as “very profound” – and there was no mention of sanctions.

A meeting with Mr Zelenskyy?

Mr Trump and Mr Zelenskyy met at the White House in February. Pic: Reuters/ Brian Snyder
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Mr Trump and Mr Zelenskyy met at the White House in February. Pic: Reuters/ Brian Snyder

It was expected that after the talks, Mr Trump could set the table for the next meeting with the Ukrainian president.

While he said he would call Mr Zelenskyy, he made no public commitment to a meeting during the media conference.

In an interview with Fox News after the summit, he said Russia and Ukraine would set a date to discuss next steps and a potential ceasefire deal, but did not provide further details on specifics or timings.

“They’re going to set up a meeting now, between President Zelenskyy and President Putin and myself, I guess,” Mr Trump said. He also said that European nations “have to get involved a little bit” but it is “really up to President Zelenskyy to get it done”.

Putin brought his own limo – but travelled in The Beast instead

A US Secret Service agent stands next to 'The Beast'. Pic: AP/ Luis M Alvarez
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A US Secret Service agent stands next to ‘The Beast’. Pic: AP/ Luis M Alvarez

After shaking hands on the red carpet, the two leaders made their way towards their waiting vehicles.

But despite Mr Putin arriving with his “Aurus” limousine, and it being spotted on the tarmac near the planes, he got into the American presidential limousine, known as “The Beast”, to travel to the meeting location.

The Russian president was seen with a wide smile on his face, while Mr Trump appeared to be waving to the crowds.

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In pictures: Trump-Putin summit ends without a deal but with plenty of standout moments

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In pictures: Trump-Putin summit ends without a deal but with plenty of standout moments

The presidents of the United States and Russia wrapped up critical talks in Alaska without reaching a deal on ending the war in Ukraine. 

Donald Trump and Vladimir Putin were on the ground in Anchorage, Alaska, for only about six hours, but the historic yet inconclusive summit still produced some memorable moments.

Both leaders spoke at a news conference, but neither mentioned a ceasefire – something many hoped Mr Trump could persuade Mr Putin to accept during the discussions.

Ukrainian President Volodymyr Zelenskyy, who didn’t participate in the talks in Alaska, had said that Ukraine was “counting on America”.

The two leaders meeting each other. Pic: Julia Demaree Nikhinson/AP
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The two leaders meeting each other. Pic: Julia Demaree Nikhinson/AP

Pic: Julia Demaree Nikhinson/AP
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Pic: Julia Demaree Nikhinson/AP

Mr Trump arriving on Air Force One. Pic: Julia Demaree Nikhinson/PA
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Mr Trump arriving on Air Force One. Pic: Julia Demaree Nikhinson/PA

Mr Putin steps off the Ilyushin Il-96. Pic: Julia Demaree Nikhinson/AP
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Mr Putin steps off the Ilyushin Il-96. Pic: Julia Demaree Nikhinson/AP

A red carpet was laid out for the Russian leader. Pic: Julia Demaree Nikhinson
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A red carpet was laid out for the Russian leader. Pic: Julia Demaree Nikhinson

Pic: Julia Demaree Nikhinson/AP
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Pic: Julia Demaree Nikhinson/AP

Not far from the military base, several hundred people joined a pro-Ukraine rally. Pic: Nathaniel Wilder/Reuters
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Not far from the military base, several hundred people joined a pro-Ukraine rally. Pic: Nathaniel Wilder/Reuters

They unfurled this huge flag. AP Photo/Jae C Hong
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They unfurled this huge flag. AP Photo/Jae C Hong

The two leaders held a joint news conference after their discussion. Pic: Reuters
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The two leaders held a joint news conference after their discussion. Pic: Reuters

Pic: Sergei Bobylev/ Sputnik/ Kremlin pool via AP
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Pic: Sergei Bobylev/ Sputnik/ Kremlin pool via AP

Russia's foreign minister Sergei Lavrov and US secretary of state Marco Rubio. Pic: AP
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Russia’s foreign minister Sergei Lavrov and US secretary of state Marco Rubio. Pic: AP

Pic: Reuters
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Pic: Reuters

Pic: Jae C Hong/PA
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Pic: Jae C Hong/PA

Pic: Kevin Lamarque/Reutrs
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Pic: Kevin Lamarque/Reutrs

Pic: Kevin Lamarque/Reuters
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Pic: Kevin Lamarque/Reuters

Pic: Julia Demaree Nikhinson/AP
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Pic: Julia Demaree Nikhinson/AP

President Trump waves goodbye as he boards Air Force One after the meeting. Pic: Julia Demaree Nikhinson/PA
Image:
President Trump waves goodbye as he boards Air Force One after the meeting. Pic: Julia Demaree Nikhinson/PA

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