Biden as VP: Good for Credit Card Industry

by: Rick Biggs

American Banker makes the point (sorry, no link) that the selection of Delaware Sen. Joe Biden as Barack Obama’s running mate, widely speculated, followed by a Obama win in November could set off a sequence of events that could be a notable plus for the credit card industry.

Here goes:

  1. Obama picks Biden and then wins election;
  2. Biden leaves Senate and gives up seat as head of Senate Foreign Relations Committee ;
  3. Biden succeeded as head of Foreign Relations by Chris Dodd of Connecticut, now head of the Senate Banking Committee, who’s lately pushing for new restrictions on the card industry;
  4. Dodd in turn gives up seat running the Banking Committee so he can run Foreign Relations;
  5. He is succeeded as Banking Committee chairman by (drumroll, please) Tim Johnson of South Dakota. South Dakota is of course perhaps the most card industry-friendly state in country, as lenders have domiciled their banks their in order to operate under the its lenient banking laws.

It’s a fair bet that Johnson won’t be leaning on the industry any time soon. . . .