Bill Asking for Durbin Delay May Be Taking Shape

by Mercator Advisory Group 0

Congressional representatives will have to move fast to delay the final rules pertaining to debit card interchange regulation. It seems as if that might be happening, given that rumors are forming around likely sponsors of just such a bill.

Sen. Jon Tester, D-Mont., is widely rumored to be considering such legislation, but a spokeswoman would not discuss the issue.

Similarly, Rep. Shelley Moore Capito, the chairman of the Financial Services Committee’s financial institutions subcommittee, is expected to take a lead in pursuing such a bill.

But bankers still face a potentially insurmountable obstacle in the Senate: Sen. Richard Durbin, who authored the provision in Dodd-Frank after fighting for years for some kind of interchange limits. The Illinois Democrat has repeatedly vowed to fight any attempt to readdress the issue in legislation.

The pressure is definitely on for both sides of this issue, and we would expect that a bill would have to be introduced in very short order for it to have any hope of passing prior to the April 21st deadline.

Click here to read more. You can also click over to our Perspectives page and review the various blogs our analysts have written on this issue.