Skip to comments.TCF sues Fed over debit card fee rules
Posted on 10/12/2010 8:28:49 PM PDT by WOBBLY BOB
SIOUX FALLS, S.D. TCF National Bank sued Federal Reserve chairman Ben Bernanke and the Fed's board of governors Tuesday, saying regulations limiting the fees a bank can charge retailers for debit card transactions are unconstitutional.
TCF National, a subsidiary of Wayzata-based TCF Financial Corp., filed the lawsuit in U.S. District Court in South Dakota. The bank said an amendment to Congress' recent financial regulatory overhaul directs the Fed to adopt debit fee regulations based only on the processing costs of authorizing, clearing and settling transactions.
TCF National is chartered in Sioux Falls.
William Cooper, TCF Financial's chairman and chief executive, said those costs amount to a fraction of the total amount of money required to manage the debit card system, and the law makes no more sense than regulating the price of a fast-food hamburger based solely on the costs of the meat and the bun.
(Excerpt) Read more at twincities.com ...
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He's leaving out the savings they have not having to pay tellers.
I thought banks were supposed to make their money on the interest they made from doing loans. I guess thats not working out so hot for them anymore.