MasterCard (MA), Visa (V) Rise as Fee Limitation Rules Delayed by Fed
Tweet
Share
E-mailGet Alerts MA Hot Sheet
Join SI Premium – FREE
MasterCard (NYSE: MA) and Visa (NYSE: V) are trading stronger ahead of the bell on Wednesday, following reports that the U.S. Federal Reserve will not make its April 21st deadline on a rule set to crack down on fees that banks charge merchants.
Fed Chairman Ben Bernanke said the Fed needs more time to analyze about 11,000 comment letters it has received, but is committed to having a final rule in place by July 21, when the limit is required to be in effect.
The delay gives banks and card issuers more time to convince Congress that further delay, or a possible change in the rule, is needed.
The Fed's proposal in December cut fees by 75 percent, to 12 cents per transaction. Bank of America (NYSE: BAC) argued that the cut would cost them $2.3 billion in fee revenues annually.
MasterCard is trading 2.2%.
Fed Chairman Ben Bernanke said the Fed needs more time to analyze about 11,000 comment letters it has received, but is committed to having a final rule in place by July 21, when the limit is required to be in effect.
The delay gives banks and card issuers more time to convince Congress that further delay, or a possible change in the rule, is needed.
The Fed's proposal in December cut fees by 75 percent, to 12 cents per transaction. Bank of America (NYSE: BAC) argued that the cut would cost them $2.3 billion in fee revenues annually.
MasterCard is trading 2.2%.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Ferguson Enterprises to Join S&P 500; ADI Global Distribution to Join S&P SmallCap 600
- Why BofA says July Fed rate hike would be "unprecedented"
- US Treasury Has Informed Banks That It May Intervene In Yen Market On Friday - Source Familiar With The Matter - Reuters
Create E-mail Alert Related Categories
Fed, Trader TalkRelated Entities
Ben S. BernankeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
