Calculators are burning up, as analysts begin to weigh in on the size of the dent the final Durbin Amendment interchange rules may make in issuer revenue streams. In this article, Moody’s makes its prediction.
“The Federal Reserve’s decision last week to cap the fees at 21 to 24 cents per transaction, rather than the 12 cents it originally proposed, will save the banking industry some $3.5 billion in revenue each year, according to a new report by Moody’s.”
Of course, it’s the details that matter and we won’t really know the impact to the market until 2012 at the earliest. But there’s no doubt of the comfort found in that larger final number.