A legal challenge to price controls on debit card interchange fees has fallen flat. The Star-Tribune (“TCF v. Bernanke? Bernanke wins again“) reports that TCF has lost a legal challenge to the Durbin Amendment. A U.S. appeals court in South Dakota Wednesday rejected TCF Financial Corp.’s effort to block the law with an injunction. The bank […]
Tag archives for Durbin Amendment
We’ve been following the fate of the Durbin Amendment because with its price controls and favoritism, it’s a great example of a bad policy. It also has a Minnesota angle, too, as a recent editorial in the Star-Tribune mentions. The editorial supports a delay in the implementation of the Durbin Amendment, something I wrote about […]
Updated March 17: The Wall Street Journal picked up the idea of “Republicans for Price Controls” this morning in its lead editorial. They have a great idea: rename the Durbin Amendment the “Payday Lender Empowerment Act.” Price controls do not work. They distort markets and hurt consumers. Period. Unfortunately, the Beltway is attempting to deal with this by “delaying” the law for two years. As the Journal said, “if the law is a bad idea, it won’t be a better idea in two years.” Amen to that.
Are Republican politicians favorably disposed to the free market and non-intervention on the part of the government? Not necessarily. Subsidies for ethanol, for example, are a staple of