The legacy of Ken Lewis always wins in America.
Maybe the other backdoor bailouts and subsidies aren't enough, but in any case the banks' army of lobbyists has the Fed reconsidering the limits it planned to impose on debit card fees paid by merchants. Remember, the Dodd-Frank Financical Reform bill had authorized the Fed to set such limits and prohibit the banks and credit card companies from gouging retailers and consumers with hidden or exorbitant fees. Notice that Dodd-Frank didn't set any limits in the bill itself, but thanks to the lobbying efforts by the financial industry, Congress passed that responsibility on to the most bank-friendly "regulator" in the history of the United States. That's right, the Fed. This was by design. The banks knew they could fight the battle on fees later on, out of the spotlight.
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Fed may reconsider plan to limit debit card fees
WASHINGTON – The Federal Reserve is telling Congress it may reconsider its proposal to limit the fee that banks charge merchants for debit card transactions to 12 cents per swipe.
The financial overhaul bill that President Barack Obama and Congress enacted last summer ordered the Fed to issue rules that would set the fees at a reasonable rate. Currently, merchants typically pay between 1 and 2 per cent of the transaction's total.
The question of where to set the fees has triggered an intense lobbying battle pitting merchants and some consumer groups against banks and credit card networks.
In testimony prepared for delivery to the House Financial Services Committee on Thursday, Fed Governor Sarah Bloom Raskin says because the issue is so complex, the Fed is "reserving judgment" until it gathers more information.
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