ABA Disappointed with Senate Vote on Interchange

By Frank Keating, ABA president and CEO

“The American Bankers Association, along with the thousands of community banks we represent, is deeply disappointed with the outcome of today’s Senate vote.  Failure to approve the amendment sponsored by Sens. Tester (D-Mont.), Corker (R-Tenn.) and others to address the serious concerns over the Durbin debit interchange amendment marks a dark day for every bank that issues debit cards and for consumers that have come to rely on them

“The Senate has essentially said it is fair for one industry to reap what another has sown, and American consumers will now have to pay more for basic banking services, while big-box retailers go off and count their unjustified profits.  Community banks – the backbone of local communities – will suffer the most.  They will see a reduction in a key source of revenue that allows them to offer low-cost banking services to everyday consumers and supports lending and fraud protection measures.  Key banking regulators have unequivocally stated that small banks will be harmed by the underlying Durbin amendment.  It is simply unconscionable that the Senate would not act to protect community banks from this destructive effect.

“It is clear that a majority of the Senate supported the amendment offered by a bi-partisan group of senators to address the serious concerns over the Durbin debit interchange amendment, just not enough to reach the 60-vote “super-majority” threshold needed for Senate action.

“We will continue to push hard for relief from this ill-conceived law.   The Federal Reserve has a rule pending that will result in significant harm for community banks and the consumers served by them.  It is within the Fed’s power to mitigate the disastrous consequences that are sure to come from this policy initiative.  We urge the Fed to take all necessary action to do so.”

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The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its two million employees. The majority of ABA’s members are banks with less than $165 million in assets. Learn more at aba.com.

Source: www.aba.com