Dillinger, the crime syndicate and usury: how not having federal laws helps crime.

[Democrats_win]

The bank robber John Dillinger could rob a bank and then escape to another state for safe haven. Local law enforcement couldn't really touch him when he went to another state. During the depression, the lack of federal criminal laws assisted his crime spree. Likewise, at the time, major crime syndicates could operate coast-to-coast with impunity. They greatly feared enactment of federal crime laws. That's why Dillinger's old friends turned against him. His very visible crime spree was pushing congress to act.

Now, the lack of a federal usury law allows the modern crime syndicate, credit card companies, to seek haven in usury-allowing states while committing usury in states that do not allow usury. Worse, local governments will actually assist the modern crime syndicate in enforcing the high interest rate contracts.

It is past time that the federal government institute a strict usury law criminalizing any interest rate above 10%. At the very least, the government should never play a part in enforcing this criminal enterprise.

[malletgirl02]

1. Very interesting

That is a very interesting connection.

[myrna minx]

2. FYI...Saint Paul Minnesota in the 20's and 30's was a safe haven for criminals

and gangsters due to police Chief John O'Connor's covert deal: As long as no crimes (Bank heists etc) were committed in St Paul, and the crooks greased the palms of law enforcement, St Paul could be a "safe haven" for the underworld. The Twin Cities became a hide out for Baby Face Nelson, John Dillinger and even hosted Al Capone from time to time. The Wabasha Caves were converted into a speakeasy and criminals were able to come to and fro without the fear of reprisal. It's one of those open secrets of local lore. It all comes down to cold hard cash, lawmakers AND law enforcement looking the other way.

[unblock]

3. there are certain businesses that are fundamentally national in nature

credit card companies are not naturally south dakota businesses or delaware businesses. they operate across the country and most of us think of them as essentially the same regardless of where we live or where the originating bank is located.

for states, therefore, it is a classic race to the bottom to provide the most attractive regulations (or lack thereof) and protections for issuers, enabling banks to reap inappropriate benefits by playing states off against each other in much the way a child of divorce plays parents off against each other. except with 50 parents, there's no hope of ever getting a united front, except for going federal.