Bob Corker (R-TN) was among the bipartisan group of nine senators who introduced a bill March 15 to delay implementation of the Fed’s proposed debit card regulations for two years in order “to study the market and appropriate regulatory structure for electronic debit card transactions.”
In an interview with CNBC’s Lori Ann LaRocco published March 21, Sen. Corker reaffirmed his belief that he doesn’t think the government should be “setting prices.” He said his bill to defer the new debit rules is picking up several co-sponsors.
“I understand there is tremendous difficulties in negotiating with these entities but arbitrarily setting a price and have the Federal Reserve chairman do it is not the way to go,” he told LaRocco. The way this amendment was passed was not correct.”
Sen. Corker also pointed out the Durbin Amendment that mandated the debit interchange regulations was never debated, as well as the fact that the OCC and FDIC both have issues with the legislation.
“The folks that regulate these entities have even said this is problematic,” he added. “You could tell in Ben Bernanke’s testimony that he was very uncomfortable with the orders he was given by Congress on how to set this… There’s got to be a better solution to the Durbin Amendment. I was shocked that something like this was passed in the reform bill.”
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To read more of Sen. Corker’s interview, including his thoughts on why the Fed’s proposal will hurt rather than help small financial institutions, click here.
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