As the Federal Reserve wrapped up their fact-finding inNovember (their Durbin-related surveys were due back October12th), TCF Financial filed a lawsuit challenging theDurbin Amendment as unconstitutional.So far, we haven’t seen anyother financial institutions climb on, although EPC issued a pressstatement in support of the suit.Whether or not this lawsuit holdsup will be determined by the courts, but in a period wherefinancial institutions have had to accept one regulatory blow afteranother, one has to imagine there are more than a few bankersquietly applauding in the background.
However, what this lawsuit does do is emphasis the trulydifficult job the Federal Reserve has in front of it.There will belarge numbers of people and organizations that are going to beunhappy with their rulings, not matter what they end up to be.Andone cannot assume there will be clear winners, since the paymentsecosystem is highly complex and decades of practices, businessmodels, and partnership arrangements will be affected.Will thisleave the door open for more lawsuits to come?It’s certainlylikely, but in the meantime, the industry will be watching this oneclosely as for right now – it’s all they’ve got.