GLG News by Banking, Insurance, and Financial Institution Experts: Lawyers (US)

Duncan MacDonaldConsultantDuncan McDonald

Court threat to Dodd-Frank on interchange caps

October 13, 2010

Analysis of:TCF Calls for Reinforcements in Long-Shot Battle vs. Dodd-Frank - American Banker Article | www.americanbanker.com

The article spells out why TCF Financial's suit against the FRB over debit interchange fee regulations is a "long shot." TCF says the Durbin amendment to the Dodd-Frank bank reform legislation unconstitutionally forces the FRB to lower the fees under cost and discriminatorily, because they will not cover all bankcard issuers. The former would constitute a taking of TCF's property without due process or just constitution in violation of the 5th amendment and the latter the equal protection clause. The article says there are many laws that have drawn distinctions like Durbin that have been upheld in court.

Duncan MacDonaldConsultantDuncan McDonald

Constitutional challenge to Durbin debit card regulation

October 12, 2010

Analysis of:Federal Reserve Sued by Minnesota Bank on Debit Caps | www.bloomberg.com

TFC Financial, a MN bank, has sued to stop the FRB from issuing debit card interchange pricing regulations pursuant to the new bank reform legislation -- the so-called Durbin amendment. TCF claims Durbin is unconstitutional.

Duncan MacDonaldConsultantDuncan McDonald

American Express not a pushover for DoJ

October 6, 2010

Analysis of:American Express Sinks Again on U.S. Antitrust Case | www.bloomberg.com

American Express has decided to fight the DoJ's effort to force it to allow merchants to steer its cardholders into paying with less expensive payment vehicles. The impression by this and other media reports is that Amex is vulnerable to a defeat and thus sizeable revenue losses, as well as exposure to market share reductions by its competitors.

Duncan MacDonaldConsultantDuncan McDonald

Another win for merchants against card networks

October 5, 2010

Analysis of:U.S. Proposes Settlement With MasterCard and Visa - NYTimes.com | www.nytimes.com

As announced in the NYT, the Justice Dept. has forced Visa & MasterCard to allow merchants to steer cardholders to the cheapest alternative over interchange expensive cards: lower rated debit cards, lower rated credit card types (e.g., those without reward features), prepaid cards, cash discounts, etc. Because American Express would not similarly settle, the DoJ sued it to achieve the same result, perhaps more.

Duncan MacDonaldConsultantDuncan McDonald

Ominous study by Boston FRB on credit card interchange pricing

July 29, 2010

Analysis of:FRBB Public Policy Discussion Papers | Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations | www.bos.frb.org

The study by the Federal Reserve Bank of Boston is a threat to the bankcard industry. Although it focuses only on credit card interchange, which it criticizes quite strongly, it could influence how the FRB in D.C. will regulate debit interchange per the Durbin amendment in the new bank reform law. To my knowledge, it is the first time the fed has ever condemned interchange pricing. The study says credit interchange results in a significant monetary transfer from cash customers to cardholders.

Duncan MacDonaldConsultantDuncan McDonald

Smoot Hawley Redux: The new Consumer Financial Protection Agency

June 28, 2010

Analysis of:Lenders prepare for wide changes under Consumer Financial Protection Agency | www.ft.com

The key quote in the article, from a bank trade association executive, says the CFPA is "the single most damaging provision in the legislation" to reform the retail banking system. In fact, the new agency's powers are as extensive as any given to any agency in US history. They literally give the CFPA a life and death power over every product and process in the retail banking system. The only questions that remain are who will head it, how broadly will it be enforced and what will it cost?

Duncan MacDonaldConsultantDuncan McDonald

By how much will bank reform reduce debit interchange fees?

June 28, 2010

Analysis of:Interchange Measures May Cost Banks More than $5B - American Banker Article | www.americanbanker.com

The Banker estimates that the FRB could interpret the reform law to justify debit interchange fee reductions in the 50% range (or more) from current levels or about $5B per year. Is the Banker's guess on target? Will the FRB squeeze a key revenue scheme that could hurt dampen spending and consequently harm card issuers and cardholders?

Duncan MacDonaldConsultantDuncan McDonald

Bankcard pollution spreads across retail system

June 17, 2010

Analysis of:End Is Seen to Free Checking | online.wsj.com

The article covers the natural consequences of the bankcard meltdown that produced last year's draconian CARD Act and this year's threat to debit interchange fees. Essentially, both require that fees for a late payment and merchant debit interchange be reasonable and proportionate to the card issuer's fixed operational costs. By reducing revenues, they force issuers to reduce other costs and find new fees. Hence the article's emphasis on new deposit account fees and forced account closings.

Duncan MacDonaldConsultantDuncan McDonald

Is Congress going to dilute the Durbin interchange amendment?

June 11, 2010

Analysis of:Senate Holds Reg Reform Conference s Upper Hand - American Banker Article | www.americanbanker.com

A small part of the article focuses on the controversial bankcard interchange provisions in the bank reform bill now before a joint House-Senate reconciliation committee. Interestingly, it has quotes from the committee leaders that hint there will be adjustments. Rep. Frank states that "some of the provisions" of the amendment will survive and Senator Dodd says "modifications will be coming." But how so: simply by writing the provision more clearly, or toughening or diluting them?

Duncan MacDonaldConsultantDuncan McDonald

Will bank reform conference committee dilute Senate bill?

May 26, 2010

Analysis of:Democrats Reg-Reform Conference Choices Bode Ill for Banks - American Banker Article | www.americanbanker.com

The article reports that the conferrees chosen so far to sit on the joint Senate/House committee to finalize bank reform legislation is weighted toward the left -- toward opponents of bank interests, in effect, toward a tougher anti-bank result.

Previous Page : 1234567Next11 to 20 of 66