Things That Go Bump In The District
Two Tidbits…
The November 18, 2011 American Banker reported that “lawmakers from both sides of the aisle were effusive Thursday in their praise of Thomas Hoenig, the nominee for the FDIC's No. 2 post.” Mr. Hoenig is the recently retired president of the Federal Reserve Bank of Kansas City.
Now that debit card interchange rates are controlled by Federal Reserve Regulation II (as a result of the Durbin Amendment in the Dodd-Frank Act) the next step is almost certainly a move by interested parties (retailers, for example) to establish controls on credit card interchange rates. The financial and card industries are bracing for the battle and various responses and counter-strategies are, in all probability, in the planning stages.
Just a Heads Up…
As previously noted, the final regulations, in the form of changes to Regulation E, regarding international remittance transfers are not expected until January, 2012. There seems to be mounting opinion that the final rules will look very much like the proposed rules. That proposal drew a great deal of attention (and concern) from the financial institution community due to the very substantial consumer disclosures which were embedded in it – disclosures that many consider onerous. There is already consideration of an industry legislative response in the event the final regulations are so extensive and difficult that they damage a financial institution’s ability to provide such services to its customers/members.