Rare loss for banks
May 15, 2010 | federal legislation, industry | Comments (0)The Durbin debit card fee cut that is. The Pundit thinks there will be unintended consequences. Banks will simply raise fees elsewhere to make up for the lost revenue. From the story:
A version of the legislation that cleared the House in December didn’t include restrictions on interchange fees.
So Thursday’s Senate passage of an amendment by Democratic Whip Dick Durbin of Illinois came as a surprise. Seventeen Republicans were among the 64 senators voting in favor.
The proposal would give the Federal Reserve authority over interchange fees on debit cards issued by banks with more than $10 billion in assets. Most debit cards are issued by large national banks with assets above that threshold.
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