Regulatory Overhaul In Flux
The regulatory overhaul legislation, H.R. 4173, could reach the House floor today, according to NAFCU.
But Senate negotiations on the bill reopened yesterday, following the death of Senator Robert Byrd (D-W.V.), in order to maintain the 60-vote supermajority needed to prevent a filibuster. However, Politico reported the administration as saying final passage is likely to come after the Independence Day recess, but the regulatory overhaul is expected to pass.
While Financial Services Committee Chairman Barney Frank (D-Mass.) reportedly circulated a letter supporting the $10 billion floor for institutions governed by new interchange fee rules to come from the Federal Reserve, NAFCU said it was immaterial; the marketplace will force smaller institutions down to the levels set by the Fed. CUNA plans to work with the Fed on ensuring smaller institutions are treated as exempt and the Frank memo provided a good outline of congressional intent.
The conference agreement also prevents merchants from discriminating among issuers of debit and credit cards, which would have been allowed under a previous version of the bill.
Individual Senators will play a big role in whether the legislation passes or not, including according to insiders keeping Sen. Russ Feingold (D-Wis.) in favor of the legislation, as well as the more moderate Republicans who are supporting it.
Also in the bill is a provision providing the NCUA parity with the FDIC to provide unlimited deposit insurance on noninterest bearing accounts.