Banks lose battle over debit card swipe fees
JEREMY HOBSON: At this time yesterday, we told you about a vote that was about to happen in the Senate. It involved the fees retailers pay banks every time you use your debit card. The new Dodd-Frank financial reform law puts a cap on those fees. The banks didn’t like that and yesterday’s vote would have — at least temporarily — meant no cap.
But the banks lost that battle in the Senate yesterday. And some are wondering if that means they’ll lose other fights over new rules in the Dodd-Frank law.
Karen Petrou is with Federal Financial Analytics and she joins us now from Washington. Good morning.
KAREN PETROU: Good morning Jeremy.
HOBSON: Well, Karen have the banks lost their sway in Washington after this vote?
PETROU: No, I don’t think so. And no one should win all the time. And banks never did and they won’t and that’s fine. You know sometimes they should win and sometimes they should lose and I think the question is, “Which is which?” But you know they’re not the omnipotent force sometimes portrayed in particularly the more evil-minded view of the industry.
HOBSON: Well, right now there are a lot of rules that are part of the new financial reform law that are being worked out by the regulators. What kinds of things are at stake for the banking industry and for consumers in the coming months?
PETROU: It’s going to be a whole new game. What’s at stake for both is a redefined strategic landscape for banking in the United States. And that’s true not only for consumers day in day out with their checking accounts but also for corporations as new capital rules and other requirements required by the Dodd-Frank act and global regulars come into play.
HOBSON: Karen Petrou managing director of Federal Financial Analytics thanks so much for your time this morning.
PETROU: Thank you Jeremy.
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