Republicans on the House Financial Services Committee have released a video showing warning signs from financial regulators that the Durbin Amendment would hurt consumers.
The video shows clips of members of Congress as well as Federal Reserve Chairman Ben Bernanke and former Federal Deposit Insurance Corporation Chairman Sheila Bair describing the likelihood that the cap on debit card interchange fees would cost consumers more money and put small banks and credit unions at a disadvantage.
Clips of Bernanke testifying before the Senate Banking Committee show him providing his outlook on the Durbin Amendment.
“It’s certainly possible that some of those costs will get passed on to consumers in some way, for example, a charge for a debit card or something like that,” Bernanke said during the hearing.
The video shows Sen. Jon Tester (D-Mont.) asking Bernanke what the effects would be if the rule doesn’t work.
“Well it’s going to effect the revenues of the small issuers and it could result in some smaller banks being less profitable or even failing,” Bernanke said.
The video is one of many that will be released by the majority staff of the House Financial Services Committee that will focus on the negative impact of the Dodd-Frank Act.