Tester Bends, Doesn't Break in Interchange Battle



Sen. Jon Tester: No retreat, no
surrender. Montana Democrat
plows ahead with plan to
delay implementation of Durbin
interchange rules.



The week began slowly for "Delay Durbin" proponents in the U.S. Senate where Majority Leader Harry Reid decided to debate oil company tax breaks, offshore drilling and judicial nominations. The small business innovation bill (S. 493), where the Tester Amendment to study and delay the rules on debit card interchange is pending, appears to be in legislative limbo (or purgatory if you wish). Two months remain before the Durbin Amendment is to take effect and the Federal Reserve Board has yet to publish a final rule.

Mid-week saw a significant momentum shift. The highlights are as follows:



Senate Majority Leader Reid.
If Tester can show support, he'll
give him a vote on delaying
Durbin.



• Sen. Durbin spent the last moments of the Senate session on Tuesday giving his interchange "stump" speech. He lashed out again at familiar opponents such as the Wall Street Journal and the American Bankers Association. Durbin revealed one news nugget by suggesting the Fed's final rule will be out the first week of June (Blogger's Note: Ben Bernanke is probably the only person who knows the exact date).
• 
  Majority Leader Harry Reid on Wednesday publicly backed Durbin against delaying the final rule, but he will give Tester a vote on his amendment provided Tester can demonstrate 60 votes in support.

Sen. Tester announced late Wednesday that he will revise his amendment to lower the study period from 24 months to 15 months. News reports speculated Tester's move was to garner a handful of remaining votes pushing him over 60 votes.

Tester is likely to file a revised amendment to another bill to accommodate the study period change and possibly other modifications. Many believe Tester will file the new amendment to the Patriot Act renewal bill which the Senate is likely to debate the week of May 23 (certain parts of the Patriot Act are set to expire May 28).

Please visit next week as this tug-of-war grows ever more intense.

Tester Bends, Doesn't Break in Interchange Battle

Will the Tester Amendment Be Part of the Small Business Bill?

More than a month has passed since Federal Reserve Chairman Ben Bernanke wrote Congress about missing the April deadline to issue the final rule on debit card interchange and network exclusivity. "Delay Durbin" proponents and opponents have been locked in battle on Capitol Hill, in the news media and in the courts. At this writing, we do not have a winner.

Still up in the air is whether Montana
Democrat Jon Tester's "stop and
study" bill regarding the
Durbin Interchange Amendment will
be part of any small business bill
that makes it out of the Senate.

Congress returned to work after a two week recess. Sen. Jon Tester's (D-MT) amendment to "stop and study" the Durbin Amendment remains pending to S. 493, a small business innovation bill. The Senate has had S. 493 under consideration since mid-March in an off-and-on capacity. Sen. Majority Leader Harry Reid (D-NV) sought to end debate on S. 493, but the vote failed 52-44 (60 votes were required to end debate). Once the vote failed, the Senate tabled further consideration of S. 493 while both sides attempt to resolve several "contentious' amendments such as regulatory reform and budget cuts. The Tester amendment remains in limbo.


More House members signed on as cosponsors to H.R. 1081, the House version of Sen. Tester's efforts. The total is more than 90 as of this week. Two Republican members from South Carolina (Reps. Joe Wilson and Jeff Duncan) removed their names as cosponsors recently suggesting the tug of war between the financial services industry and retail community is alive and well.


Back to the Senate side, leaders will likely reach a deal on final amendments to the small business bill in the coming days or decide to shelve it all together. My sense is a deal will be struck, but the question remains whether a vote on the Tester Amendment is part of the deal. If it doesn't happen with the small business bill, Tester will look for another legislative vehicle as the clock ticks toward July 21.

Will the Tester Amendment Be Part of the Small Business Bill?

A Tester Vote Could Be a Week Away

Could a vote on delaying implementation of the Durbin Interchange Amendment be far off? According to The Las Vegas Review Journal, maybe not. 

Senate Majority Harry Reid continues to work with both Sen. Jon Tester, D-Montana, and Senate Whip Dick Durbin, D-Illinois, on the details of Tester's bill, which would delay implementation of Durbin's long-sought cap on debit card interchange, says the Review Journal.

The Senate will try to finish consideration of its small business bill (S. 493) the week of May 2. The article suggests a vote on the Tester amendment is likely.

On the House side, the Financial Services Committee released a tentative May hearing/mark up schedule. Rep. Shelley Capito's bill (H.R. 1081) is nowhere to be found. The House continues, it appears, to be content to let action happen on the Tester Amendment first.

DIA.org will report on whether Federal Reserve Chairman Ben Bernanke provides any information on the final rule's timing at his press conference--as well as the Senate's floor schedule for May 2.

A Tester Vote Could Be a Week Away