Thursday, March 10, 2011

Banks Win Again: Congress Caves On Debit Card Fees

It never ends. As part of the Dodd-Frank financial reform bill, the Federal Reserve was tasked with capping the fees banks charge merchants for debit card transactions. This rule on fees was supposed to be finalized by April of this year and to take effect by July, but the banks and their lobbyists have been screaming bloody murder.

They've also been throwing around lots of cash. See here. And it worked!

Call it the glory of "bi-partisanship." According to reports, Democrat Senators, including Jon Tester of Montana, and Republic Senators, including Bob Corker of Tennessee, are now drafting legislation to block and delay the cap on fees. All to protect consumers, of course. Actually, banks stand to lose around $12B in annual revenue from the mandated reduction in fees.'


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