Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, June 15, 2016

House Bill Introduced to Repeal Durbin Amendment

Rep. Randy Neugebauer (R-Texas) has introduced H.R. 5465, a bill that would repeal Dodd-Frank’s Durbin Amendment, which institutes a cap on debit interchange fees charged by institutions with $10 billion or more in assets. Neugebauer noted that as a result of the Durbin Amendment, some banks reduced their free checking account offerings, increased account fees and instituted higher minimum balance requirements.

Neugebauer said:
What the Durbin Amendment did… was artificially shift over $30 billion in revenue from one industry to another. Instead of promoting free market principals and technological advancement, such as enhanced data security capabilities, the Durbin Amendment was nothing more than a government action to manipulate the marketplace. This legislation will restore competition in the marketplace, remove arbitrary government price caps, and ensure consumers have affordable access to basic banking services.

ABA expressed strong support for the bill. ABA President and CEO Rob Nichols said:
When the government picks winners and losers in the marketplace, consumers lose. The Durbin Amendment has distorted the market to the detriment of small businesses, consumers and banks of all sizes. Retailers would rightfully oppose laws setting the price of milk or paintbrushes in their stores. After a half decade of trial and failure, we hope Congress will allow this divisive and outdated retailer giveaway to fade into the rearview mirror.

Read ABA's statement.

No comments:

Post a Comment

Please read our comment policy before making a comment.