High Noon for Credit ? Uncle Ben puts the Credit Card Industry under "The SpotLight"

CallMeASeeker Update May8 2008, : This post (short version) now on my new blog (Obamanomics) at BarackObama Community Blogs http://my.barackobama.com/page/community/blog/obamanomics
CallMeASeeker: May 06, 2008-" Since the Fed Cut last week, Ben Bernanke has been giving Congress and the Finance Industry something to think about, something positive - about credit cards. The target of his testimony to Congress was predatory business practices, lack of transparency on consumer policies and "stealth tactics" that credit card companies employ like "two-cycle billing" - where interest from amounts due in previous billing cycles are tagged on to the current billing cycle.
This is not Uncle Ben's first attempt at bringing about positive changes to protect the economically challenged amongst us who form the credit card industry's 'target market' for new sales. More on Uncle Ben later(A profile of Uncle Ben's time in the Fed and A Quiz on financial literacy by the man himself at end of this post)
What I want to spotlight here is the recent buzz of activity in the credit card markets and the timing of Ben Bernanke's recent pronoucements(Seattle Time May 6, 08 High Interest in Credit). Is there a showdown cooking between the Fed and the financial industry? Is Uncle Ben being-proactive to stop the next bubble?. Also crucially is the Fed itself in agreement on this direction? "If the Federal Reserve Board is not lobbied into paralysis, Bernanke's new credit-card rules could be in place by Jan. 1."
Presidential Candiate and Probable Nominee Barack Obama's Credit Bill of Rights also targets some of the same practices Bernanke has been highlighting to Congress and on that note go donate now!!! Vote Barack Obama 08
Take a look at what's been happening in the credit card industry recently and see Fed Board of Governor's profiles at the end of this post:
1. March 19, 2008 Visa IPO : JPMorgan Chase makes $1B-plus on Visa IPO - From CNN Money
"JPMorgan is the largest of six principal bank stockholders of the the card processor, who all reaped big bucks from the offering. The debut was so successful that Visa sold additional shares, boosting the banks' takes"
2. April 19, 2008 Global usage of Credit cards and news since the Visa IPO - Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry(from Seeking Alpha)
"There is definitely a shift from cash to credit cards worldwide, just as there was a shift from renting to home ownership based on the wide availability of mortgages, but is only a matter of time before this comes to a screeching halt. Visa (V) and MasterCard (MA) get paid a fee which is equal to a percentage of each transaction, and have no credit risk. Mortgage brokers have no direct credit risk either and they get an upfront fee when the transaction closes.
"There are a few other issues contributing to the negative trends for the credit card industry: Retailers are getting increasingly vocal against the interchange fees and now being debated is the Consumer Bill of Rights "
3. May 2008 Ben Bernanke targets unfair and deceptive practices by credit card companies - From DowJones via NASDAQ
"Bernanke and the Fed outlined a broad proposal to crack down on unfair and deceptive practices by card companies. The joint proposal, created in conjunction with the Office of Thrift Supervision and National Credit Union Association, would prohibit or limit a number of bank and card company practices that have come under fire from consumer advocates
4. May 1, 2008 Bernanke suggests student lender subsidies review (Boston.Com)
"Fed Chairman Ben Bernanke, in a letter to Senate Banking Committee Chairman Christopher Dodd, said recent student loan market problems stem from many causes, including cuts made last year by Congress in lender subsidies......Dodd had written to Bernanke asking the Fed to consider allowing primary dealers, which buy and sell government securities, to pledge student-loan-related-assets to obtain credit through the Fed's term securities lending facility.Without answering Dodd directly, Bernanke said: "Student loan-related assets can already be pledged as collateral at the Federal Reserve's other three lending facilities."
""The Federal Reserve is working to promote the restoration of more-normal conditions across the broad landscape of financial markets," Bernanke said in the letter."
4. May 6, 2008 Target sells 47% of Credit card debt to JP Morgan in a $3.6Bln deal - From The Nashville Business Journal

5. May 6, 2008 From Seeking Alpha Big Ben's Credit Card Moves : More On Bernanke's proposals, correlations of credit card debt with the mortgage debt and a look at profiling and marketing practices of credit card companies
"Citing another pressure point in the U.S. economy, the Federal bank regulators are developing a swift action plan against abusive credit card companies.
Evidently, the threat of revolving credit card debt poses a significant risk to consumers. While credit card companies do not like additional government scrutiny, bank billing policies have become too aggressive. This does not mean the consumer gets a free ride here. However, if credit cards are going to be the future platform of electronic transactions, then there needs to be a degree of uniformity between banks.

More about Bernanke
Profiles of The Fed Board of Governors
Take a look at the profiles of the Fed Board of Governors and you be the judge of why there may be a conflict within the Federal Reserve. The Fed Board is nominated by the US President.
The current members of the Board of Governors(all appointed by George W Bush) are:
Ben Bernanke, Chairman
Donald Kohn, Vice-Chairman
Frederic Mishkin
Kevin Warsh
Randall Kroszner

Uncle Ben's Financial Literacy Program and QUIZ - Link
From The Wall Street Journal RealTimeEconomics Blog

Ben Bernanke's Financial Accelerator Theory and Research on The Great Depression
From the WSJ RealTimeEconomics Blog - Why Bernanke’s Great Depression Research Matters Today
From the Federal Reserve Board's Website - Bernanke's Speech at the Atlanta Fed June 15, 2007 "The Financial Accelerator and The Credit Channel"