New Developments for the Durbin Amendment

Fed Chairman Bernanke sent a letter to Financial Services Committee Chairman Spencer Bachus yesterday to let him know that the Federal Reserve will not meet the April 21st deadline for the Board to prescribe regulations implementing the interchange fee restrictions in the Dodd-Frank Act.  Despite of this, the Fed is still committed to meeting the original July 21 implementation deadline. 

Evercore commented that they see the letter as an incremental positive for banks and that Senator Tester’s legislation (introduced March 29) raises the likelihood of a potential delay of the Durbin amendment.

The NY Post reports that lawmakers are planning to bring a vote that would delay the new rules to the Senate floor as early as this week.