An irate judge threw the Federal Reserve another curve ball during an Aug. 14 hearing when he gave the regulator until Aug. 21 to persuade the court why its 21-cent interchange debit cap should not end.
Hearing on Wednesday to focus on how Fed would replace interchange cap and network rules.
Judge raised the possibility of ordering card issuers to pay merchants while he gave Fed another week to explain how it would amend cap rule.
Angry Judge Richard Leon tells Fed its attorneys can "came come off vacation" and raises specter of damages from overcharges.
Whether or not the Federal Reserve can or will appeal the July 31 court decision that overturned two-thirds of its debit interchange regulation hinges on several unresolved legal questions.
Keefe, Bruyette & Woods analysts say Justice Department could consider regulator's case too weak to pursue.
ATMIA says decision last week cancels out a year of work on enabling U.S. payment network use of EMV standards.
A U.S. District Court judge gutted the Federal Reserve’s debit card regulatory regime July 31, ruling the Fed rule disobeyed the law and ordering the regulator to rewrite it.
Judge didn't hint outcome in oral arguments. Unresolved questions - including legal standing - about ability to appeal.
Justice Department, Federal Reserve also can appeal the Wednesday ruling that threw out the 21-cent cap set by Durbin Amendment.