Congressman Randy Neugebauer, Chairman of the House Financial Institutions and Consumer Credit Subcommittee, shared his thoughts about the need to repeal the Durbin Amendment in a BankThink article in last week’s American Banker.
He begins by discussing how the retail lobby went “rent-seeking”—trying to gain subsidies by securing a special regulation that disadvantages competitors—in 2010 and found it through Sen. Dick Durbin and his debit interchange fee provision inserted in Dodd-Frank. Known as the Durbin Amendment, this provision has resulted in the successful transfer of more than $35 billion from one sector of the economy to another. What hasn’t happened is what the retail industry promised would: consumers would benefit from lower retail prices, retailers would invest in improving their payment security systems and small businesses would see a reduction in costs.
“While consumers wait for the promised cost savings to come their way, what they have received is an adverse impact on their options for banking services,” Neugebauer said. “According to separate studies, banking services have become more expensive and less accessible post-Durbin Amendment. The very consumers the amendment was intended to help are losing at both ends of the transaction.”
IBAT agrees with Chairman Neugebauer, and President and CEO Chris Williston recently wrote a Tyler Morning-Telegraph op-ed supporting the repeal of the Durbin Amendment.
Leadership Division Region 2 has invited Congressman Neugebauer to come speak at our luncheon on October 14. Please plan on arriving at 11:00 a.m. for registration. Following the legislative update, there will be an optional golf outing that provides a wonderful networking opportunity for you and your fellow community bankers in the region.
Lubbock Country Club
3400 Mesa Road
Single Lunch Seat: $60
Golf for Lubbock Country Club Members: $15
Table of Ten for Lunch: $400