The added costs to consumers because of the Durbin amendment are the focus of a video by congressional Republicans.
The video has clips of members of Congress and regulators, including Federal Reserve Chairman Ben Bernanke and former FDIC Chairman Sheila Bair, noting that the amendment could hurt both consumers and small financial institutions.
The amendment, which was attached to the Dodd-Frank financial overhaul bill that Congress passed last year, mandated that the Fed set a cap on debit interchange fees. The Fed issued a regulation last summer and it took effect on Oct 1.
Bernanke had testified before the Senate Banking Committee’s that the price controls on interchange fees would result in lower profits for small financial institutions and could force some out of business.
The video ends with the narrator saying: “Regulations have consequences. The Dodd-Frank Act has over 400.’’
The Durbin amendment video is one of a series that members of the majority staff of the House Financial Services Committee have been issuing on what they see as the negative impact of the Dodd-Frank financial overhaul bill.
