The Center for Regulatory Effectiveness filed comments on the Federal Reserve’s Proposed Rule instituting price controls on debit interchange. The comments explained that the NPRM failed to adequately analyze the small business impact of the proposal. For example, small business debit card holders would likely have to pay fees and/or receive reduced benefits if the rule is adopted as proposed. The Board’s tentative decision to set debit interchange below cost for about 20% of card issuing institutions would ensures that small business card holders pay for banking services received now received at no additional cost.
(Reuters) – A top U.S. financial regulator rejected fears that new derivatives rules will hurt businesses trying to hedge their costs, saying the price of a six-pack of beer won’t skyrocket because of the reforms.
“We’re aware and focused on the cost of a six pack because we also oversee agricultural markets,” Commodity Futures Trading Commission Chairman Gary Gensler told the House Financial Services Committee on Tuesday.
“I would say our intention is not to have margin requirements applied to an end user such as MillerCoors,” said Gensler, a marathon runner who does not drink alcohol.
From: The Washington Post
By Felicia Sonmez
Business leaders vented their frustrations with government regulations on Thursday at a committee hearing chaired by Rep. Darrell Issa (R-Calif.), while Democratic lawmakers on the panel argued that some government rules are necessary to protect public health and safety.
Eight business representatives gave testimony at the House Oversight and Government Reform Committee hearing, at which they pointed to a host of regulations across the federal government that they said adversely affected job growth. Their targets ranged from financial regulatory reform provisions to transportation, labor, environmental and energy rules.
From: Wall Street Journal/Washington Wire
By John D. McKinnon
Partisan maneuvering continues over the blue-ribbon commission that probed the 2008 financial crisis, as House Republicans find themselves stymied in an attempt to investigate the panel’s work.
Rep. Darrell Issa (R., Calif.) first requested documents and other materials from the Financial Crisis Inquiry Commission back in July. At the time, Mr. Issa said he had questions about the commission’s spending as well as concerns that the panel was taking a partisan turn.
The Federal Home Financing Agency (FHFA) plans to issue a proposed rule regarding private transfer fees. FHFA incorporated the following CRE core recommendations into the proposed rule:
1. If FHFA is to regulate private transfer fees, then it should do so by issuing a rule rather than guidance.
2. Any regulation issued by FHFA should include a carve out exception for private transfer fees that directly benefit the encumbered property.
CRE also commends FHFA for listening to the many voices expressing their concern on CRE’s interactive public docket (IPD) for private transfer fees. CRE invites FHFA to continue to review the CRE’s IPD on transfer fees available at http://www.thecre.com/tForum/.