U.S. District Court Judge Richard Leon has invalidated the Federal Reserve's cap on debit interchange for debit issuers with over $10 billion in assets and ordered the regulator recalculate it.
The Fed established the debit cap in accord with regulation it put into place to enforce an amendment to the Dodd Frank financial reform law that was named for its chief sponsor, Sen. Richard Durbin (D-Ill.)
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In an often sarcastic 58-page opinion issued Wednesday, Leon, who sits on the District Court for the District of Columbia, concluded that that the Federal Reserve had included costs of debit card issuing in its calculation of the cap that Leon said Congress did not intend when it passed the Durbin Amendment.
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