Minnesota-based TCF Bank has dropped its legal action against
the Fed.
“While we continue to believe that the Durbin Amendment is
unconstitutional because it requires below-cost pricing and exempts
99% of all US banks, we believe our lawsuit has served its purpose
in demonstrating the unfairness of the Durbin Amendment and that it
is time for us to move on,” said William Cooper, chairman and
CEO.
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He added:
“The Federal Reserve Board’s final rule is an improvement from
its initial proposal and recognises many of the points we made in
our case.”
In October,
Cooper had told RBI that the Durbin Amendments
made “no more sense than regulating the price of a Burger
King hamburger solely to the costs of the meat and the bun.”
TCF, the so-called grandfather of free
banking, had announced in January 2010 that the new rules putting a
limit on overdraft fees would force
the bank to introduce a monthly maintenance fee on more than 1
million current accounts that previously had none.
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By GlobalDataHowever,
TCF did reverse its decision a year later.
