ND1024111

Title: Washington Report: Durbin Chastises Wells Fargo CEO

Description: The senator wrote that the bank?s new consumer fee is a plain attempt to increase profits ? even though the bank just reported record-high third quarter profits.

Page Content: Week Ahead

If you encounter an example of where the Durbin Amendment is making a difference in your community please take a picture and/or send a quick email to Lyle Beckwith with a description of what you saw. With the new rules only being in effect for a few weeks, it is important for us to know what you are experiencing so we can deliver your message to Capitol Hill. We are already hearing stories of retailers giving discounts for cash or debit, or creating their own loyalty or rewards programs to incentivize customers to less expensive forms of payment.�� Critics of swipe fee reform are claiming that there are no pass-thru savings to customers taking place. We need to document as many examples of retailer discounting/rewards as we can.

�

Online Lottery Sales

On October 25, the House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade will hold a hearing titled ?Internet Gaming: Is there a Safe Bet?? NACS is following this issue as state legislators across the country are lobbying the federal government to include online lottery sales into legislation moving forward. NACS is strongly opposed to the legalization of online lottery sales. Read NACS Daily tomorrow for an in-depth breakdown of what occurred at the hearing and any actions NACS members might need to take.

�

Week in Review

�

Interchange

On October 19, Senator Durbin sent a letter to Wells Fargo President and CEO John Stumpf following the announcement that Wells Fargo would charge its customers three dollars every month to access their money with a Wells Fargo debit card in Georgia, Nevada, New Mexico, Oregon and Washington. Durbin wrote: ?Wells Fargo will still profit lucratively on debit transactions simply through the interchange revenue you will receive under the Fed?s regulation.� Your spokesperson?s claim that Wells Fargo needs to charge all its customers an additional monthly fee of more than $3 in order to make up the ?cost? of providing debit cards simply does not add up.�Instead of making up costs, your new consumer fee appears to be a plain attempt to increase your profits ? even though your bank just reported third quarter profits that hit a record high.?

�

Other News

�

• McCain Withdraws Measure to Nix Aid for Ethanol Pumps
  The proposal would have ended subsidies for new gasoline station pumps designed to increase sales of the biofuel.
• Heartland Releases State-Specific Durbin Impact Statistics
  Savings from Durbin Amendment are real, and are happening, the company reports.
• Durbin Amendment: A Weak Excuse for New Bank Fees
  NACS Senior Vice President of Government Relations Lyle Beckwith counters an op-ed that questions ?where those post-Durbin price reductions? are as a result of recently enacted debit card swipe fee reforms.
• Congressmen Seek to Combat Black-Market Cigarettes
  The STOP Act would crack down on the proliferation of black-market cigarettes in the United States.
• NEFI, PMAA Express "Guarded Optimism" Over CFTC Speculation Limits
  The groups also expressed concerns about the specifics of new commodity trading rules and certain implementation deadlines that will be tied to other, long-overdue CFTC actions.

Content Subject: Government Relations

Formatted Article Date: October 24, 2011

get links sell