Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
FDIC Chair Interchange exemption needs to be fixed
WASHINGTON (3/7/11)—A plan that would exempt credit unions and other financial institutions from the Federal Reserve’s planned interchange fee regulation changes would not work in practice, and “needs to be fixed,” Federal Deposit Insurance Corporation Chairman Sheila Bair said in a recent television appearance. Bair appeared on the March 3 edition of CNBC’s The Kudlow Report . When questioned by Kudlow, Bair said that she “would be fine” with allowing the market to determine the amount of interchange fees. Bair added that it makes her nervous “when the government tries to start doing rate regulation and charging fees.” The FDIC Chair added that there appears to be “a movement afoot” to delay interchange implementation. Bair in testimony delivered before the Senate Banking Committee last month speculated that the interchange changes could harm small financial institutions far more than they would help merchants, and a number of regulators and legislators have also noted that the proposed $10 billion exemption is likely to be impotent to protect small issuers. Credit Union National Association President/CEO Bill Cheney last week called for the Fed to stop, study and start over on interchange fee regulations and encouraged members of Congress to strike a legislative remedy that will ensure a meaningful interchange fee carve-out. (See related March 3 story: Cheney warns reg burden is growing ‘crisis’) Rep. Debbie Wasserman Schultz (D-Fla.) repeated the call for delay during CUNA’s recently completed 2011 Governmental Affairs Conference, and said that she would work with any legislator that aimed to halt the progress of the interchange fee regulation changes. (See related March 3 story: Wasserman Schultz: CUs can halt interchange train) The interchange fee regulations, which could limit the amount of interchange fees charged per purchase to as little as 7 cents, are currently set to come into effect in July. For video of Bair’s appearance, use the resource link.
Other Resources

RSS





print
News Now LiveWire
.@CUNA says new House bill is "further evidence" of lawmakers' interest in how @TheNCUA uses its funds from CUs. See News Now Monday.
6 hours ago
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
1 day ago
House Financial Services Com. to hold March 3 hearing to receive the semi-annual report of @CFPB Director Richard Cordray.
1 day ago
Rep. Jeff Miller (R-Fla.) re-introduced bill to ease veterans' access to loans for #smallbusiness purposes from a #creditunion (HR 1133)
1 day ago
You can get your subscription to @cuna 's free, daily, online #creditunion #news service News Now here: http://t.co/YtUejEmAYP
1 day ago