Saying that "having the government fix prices in almost any venue is a bad idea," a bipartisan group of 13 senators urged Federal Reserve Chairman Ben Bernanke in a letter sent yesterday to ensure that when the Fed issues regulations on debit interchange fees they don't hurt small financial institutions and consumers.
The lawmakers wrote that the amendment giving the Fed this new power, which was part of the financial overhaul bill passed by Congress earlier this year, "will make small bank and credit union debit cards more expensive for merchants to accept than those issued by larger banks and would likely put them at a disadvantage compared to large issuers. Regulating interchange fees on financial institutions over $10 billion will force smaller institutions to lower their prices in order to remain competitive."
The lawmakers asked Bernanke to "exercise the discretion granted to you to minimize negative consequences."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
