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Thursday, April 14, 2011

Durbin Responds To Jamie Dimon Letter

Jamie Dimon wrote a very thoughtful shareholder letter - one of the best. In it, Dimon is generally politically correct about all of the new legislation. Not so for the Durbin Amendment in Dodd-Frank:

The Durbin Amendment was passed with no fact-finding, analysis or debate, had nothing to do with the crisis and potentially will harm consumers….It is an example of a policy that has little basis in fact or analysis. …The harm will fall largely on consumers; banks will be forced to lose money on debit interchange transactions and likely will compensate by increasing fees in some way for deposit customers…..The Durbin Amendment is price fixing at its worst. It is arbitrary and discriminatory – it stipulates that only large banks (those with assets of $10 billion or more) will be affected by its price fixing.

Durbin then responds to Dimon, telling him essentially to "stop whining.