The Wall Street Journal’s lead editorial today, titled, “The Banker Baiters,” criticizes Washington, D.C. officials (including White House financial czar Elizabeth Warren, Treasury Secretary Tim Geithner, President Obama and Illinois Senator Richard Durbin) for their reactions to new debit card fees that have resulted from changes in banking policy mandated by the current Administration. To read the editorial, click here.
Editor’s Insight: This editorial gives historic perspective to the current fiasco afflicting small ticket debit card transactions.
The 2010 Dodd Frank law, which includes the Durbin amendment, was passed in response to the 2008 financial crisis. The law is part of the current administration’s attempts to flex more control over the banking industry.
One result has been a windfall for merchants of large ticket debit transactions but higher anticipated fees for consumer debit accounts and small ticket transactions. 10-06-11