Popular Media (ICLE)

Bank Asset Thresholds Are Warping America’s Financial System

Sens. Ted Cruz (R-Texas) and Katie Britt (R-Ala.) have introduced a modest but sensible fix to one of Washington’s many arbitrary financial-regulation cliffs.Their Community Bank Relief Act would index to inflation the $10 billion asset threshold that triggers the Durbin Amendment’s price controls on debit-card interchange fees.

The bill would restore the original scope of Sen. Richard Durbin’s 2010 regime and recognize an obvious problem: Rigid numerical cutoffs written into law more than 15 years ago no longer make sense after years of inflation, economic growth, and bank consolidation.

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