Quote:
Originally Posted by dle
The change is going to have both good and bad affects. Is it going to put some brokerages out of business, yes it will, especially the ones that have a poor credit situation. As you are probably aware GMAN that bond is to allow the other parties to file a claim against the brokerage if there are problems - damage, etc.
There are checks and balances that all of the parties are supposed to do and if everybody does what they are supposed to do then a lot of these problems would be averted.
There were a number of brokerages, large and small that wanted it raised to $25,000.
The language of the bill will allow the fmcsa to raise the broker bond every 5 years without approval of congress. On one site it had the brokers having to renew their authority every year, not every 5 years. Some things could still change by the time they have a vote. This is a very slippery slope. There is also a lot of paperwork that every broker must file each year in order to keep their authority active. The increased bond is being pushed by the larger brokerage firms. I can't imagine smaller brokers wanting to have to tie up more money than they are today. I have spoken with a couple of larger brokers concerning this legislation. They are almost giddy with excitement. What they can't do for themselves, they will get the government to do for them with the huge bond increases.