GLG News by Banking Consultants

Duncan MacDonaldConsultantDuncan McDonald

Premature to celebrate Court's curb on class actions?

June 21, 2011

Analysis of:Justices Curb Class Actions | online.wsj.com

Yesterday the Supreme Court significantly made it much harder for lawyers to bring class actions on behalf of workers but also consumers, investors, merchants, taxpayers and others. In the process it will make life much easier for businesses and our state and federal court systems. A cause for celebration, indeed.

Duncan MacDonaldConsultantDuncan McDonald

High Court's class action decision dents retail effort against interchange fees

June 20, 2011

Analysis of:Wal-Mart Wins Supreme Court Sex-Bias Case Ruling | online.wsj.com

The Supreme Court today significantly made it harder for consumer and commercial plaintiffs to sue corporations via class actions. Ruling in favor of Walmart in an anti-discrimination suit, the Court said plaintiffs must present substantial evidence that the various class members share a precise standard of commonality of facts and law to achieve a class certification consistent with the Constitution's due process protections of defendants. As such it is a big victory for businesses.

Duncan MacDonaldConsultantDuncan McDonald

Durbin's debit fee Amendment survives in Congress but may not in court

June 14, 2011

Analysis of:Banking Industry Girds for Debit-Card War in Court | online.wsj.com

The rejection of a delay in the implementation of the Durbin Amendment rule to cap debit card swipe fees at 12 cents has emboldened the payments industry to litigate the legality of Durbin and the FRB rule proposed last December. The plaintiffs will argue that the FRB's interpretation of Durbin was way off the mark per the constitutional standards that apply to federal agencies under the Administrative Procedures Act.

Duncan MacDonaldConsultantDuncan McDonald

Durbin's demise signals interchange's resurrection

May 4, 2011

Analysis of:How Interchange Debate Could Be Affected by Tester s Reelection Race - American Banker Article | www.americanbanker.com

The Banker's article all but predicts a legislative burial of the Durbin interchange amendment of the Dodd-Frank bank reform law. The final Senate vote could well exceed the number that enacted Durbin last year, perhaps garnering 65-70 votes. If so, it will be a slaughter against interchange fee regulation, with broad and long term ramifications for the card networks and their issuers.

Duncan MacDonaldConsultantDuncan McDonald

Debit card fee battle lynchpin to interchange pricing regime

March 8, 2011

Analysis of:Debit Card Fees Bring Lobbyists to Capitol Hill - NYTimes.com | www.nytimes.com

The NYT article updates the effort in Congress to delay, dilute or nix the Durbin law that strictly limits debit card interchange fees. Media coverage two months ago ridiculed the effort. Now it is on the brink of success, improbably with the help of Barney Frank. The article ignores the obvious math in the Senate that favors card issuers: powerful, key Democrats and most Republicans against Durbin. The House is even more against Durbin.

Duncan MacDonaldConsultantDuncan McDonald

Catch-22 on debit card interchange fee issue

January 4, 2011

Analysis of:At Banks, New Fees Replacing Old Levies | online.wsj.com

The article describes what bankcard issuers are thinking of imposing to offset the possible revenue losses from the proposed FRB regs to drastically limit debit interchange fees. Experts have claimed that debit fees could be reduced anywhere from 70-90% under the FRB regs, which implement the Durbin amendment to the Dodd-Frank bank reform legislation of 2010.

Duncan MacDonaldConsultantDuncan McDonald

Will the FRB sink AmExp on debit interchange?

December 20, 2010

Analysis of:AmEx Slide Weighs on Dow | online.wsj.com

The WSJ article notes that AmExp pulled the market down (12/20/10) because of investor fears that the company is "more exposed" to lose debit card interchange fees than its competitors because of the recent FRB proposed regs implementing the Durbin amendment. The feds regs could slash the fees by up to 90%. Analysts had expected a less draconian position, despite the language in Durbin that is unquestionably hostile to the bankcard industry. AmExp's debit fees rank among the highest.

Duncan MacDonaldConsultantDuncan McDonald

Debit card fee lose first round

December 16, 2010

Analysis of:Visa, MasterCard Plunge as Fed Issues Rules to Cut Debit Fees | www.bloomberg.com

According to Bloomberg, the FRB has issued a proposed regulation that will reduce debit card interchange fees by as much as 75-90%. As an FRB Governor said at its hearing this afternoon, the fed is only doing what Congress ordered in the Durbin Amendment of the new Dodd-Frank bank reform law. The effect will be vastly reduced issuer revenues, award programs and perhaps debit transactions. The FRB will now ponder industry comments and finalize a rule by mid-April.

Duncan MacDonaldConsultantDuncan McDonald

Abusive practices risk under Dodd-Frank: Multiple targets

November 23, 2010

Analysis of:New Abusive Standard in Dodd-Frank Has Bankers Nervous - American Banker Article | www.americanbanker.com

Per the American Banker article, banks are worried that the new consumer protection bureau (CFPB) will nix credit products for being "abusive" to consumers. They fear the Bureau will go too far in its interpretation -- that it will be the abuser. Unrecognized is a 3rd potential abuser in the shadows: the new Congress. It is under a voter mandate to cut government regs and costs. Which of the three will inflict abuse in 2011?

Duncan MacDonaldConsultantDuncan McDonald

Elections doom interchange, card industry challenges

November 4, 2010

Analysis of:Dodd-Frank Act May Be Scaled Back by New Congress - NYTimes.com | www.nytimes.com

The NY Times' election coverage notes how a Republican dominated House will try to scale back the Dodd-Frank bank reform law re bankcard interchange pricing and the new consumer protection bureau. It correctly notes how difficult this will be, but fails to acknowledge the possible consequences of the effort itself (i.e., regardless if it passes or fails) on the broader bankcard debate. Viewed from that perspective, Tuesday's results could prove to be a disaster for adversaries of the industry.

Page : 12345678Next1 to 10 of 74