The Hill: Durbin fires back at WSJ editorial for ripping his plan to set debit card fee

[flpoljunkie]

Durbin fires back at editorial for ripping his plan to set debit card fee
By Josiah Ryan

03/18/11

Senate Majority Whip Dick Durbin (D-Ill.) took to the Senate floor Thursday to respond to a Wall Street Journal editorial, published the same day, that attacked Durbin’s plan to set swipe fees on debit card transactions as unnecessary government interference in business.

“There is no free-market system when it comes to interchange fees imposed by these duopolies, Visa and MasterCard,” Durbin said. “You would think that even the Wall Street Journal, this bastion of conservatism and defender of the free market, would acknowledge the obvious.”

Durbin was referring to the interchange fee amendment legislation he sponsored that passed as part of the Dodd-Frank financial regulatory reform bill last year. The law would fix the swipe fee imposed by banks and credit card companies on businesses at a number set by the Federal Reserve.

The rule has not yet been implemented, but a preliminary study from the Fed indicated that the price would be moved from around 40 cents to 12 cents per transaction.

more...

See this post, as well regarding the banks' pushback against Durbin's bill. They are running this ad everywhere, including many liberal websites.



http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=433&topic_id=621238

[Armstead]

1. Kudos to Durbin....Fie on those Democrats who are allied with the GOP on this

From the article:

The editorial appeared in the wake of an effort launched Tuesday by a bipartisan coalition of senators that would prevent Durbin’s law from being immediately enacted. The Debit Interchange Fee Study Act would suspend implementation of the proposed rule for two years and calls for a one-year study of debit interchange fees.


“The federal government shouldn’t be telling private companies what they can charge for goods and services; that’s price fixing, and that’s exactly what the Durbin amendment does,” said Sen. Bob Corker (R-Tenn.), a member of the Senate Banking Committee. “The hastily passed Durbin amendment will have numerous unintended consequences for debit card users.”

The legislation, S. 575, is sponsored by Sens. Corker, Jon Tester (D-Mt.), Jon Kyl (R-Ariz.), Ben Nelson (D-Neb.), Tom Carper (D-Del.), Pat Roberts (R-Kansas), Chris Coons (D-Del.), Mike Lee (R-Utah), and Pat Toomey (R-Pa.).
The legislation, S. 575, is sponsored by Sens. Corker, Jon Tester (D-Mt.), Jon Kyl (R-Ariz.), Ben Nelson (D-Neb.), Tom Carper (D-Del.), Pat Roberts (R-Kansas), Chris Coons (D-Del.), Mike Lee (R-Utah), and Pat Toomey (R-Pa.).

[flpoljunkie]

2. Most of corporate Dem cosponsors are from 'credit card' states.

I hope this bill is on Harry Reid's 'Hell, No!' list!

[msongs]

3. WSJ = mouthpiece of the corporate criminal class nt

[formercia]

6. Another prize for Rupert Murdoch

http://online.wsj.com/article/SB118592457581183994.html

[1monster]

4. I've (unexpectedly) happened on two or three conversations regarding this

issue lately and I can tell you, the banks campaign to stop the regulation on debit card fees is not winning any converts. Most people hearing the details behind the campaign are all for clipping the banksters' wings.

And my bank has already imposed a fee on my accounts because they can no longer assess a $39.00 fee for swiping a debit card that is tapped out. Now, they have to simply decline the purchase if there are not sufficient funds in the account to cover the cost (unless one opts for that "protection" and he/she would still have to pay the account fees).

[flpoljunkie]

5. You'd have to put your money on the banks since they 'own' Congress, Durbin has said.

Of course, President Obama would have to sign any bill--unless they put it in a must pass bill.

Congress will never work really for us until we finance their campaigns. They rely on the big special interests to fill their campaign coffers. It is a vicious cycle.

The sooner people figure this out, the better.