It was an amendment to prohibit credit card companies from charging more than 30 percent interest.
The Senate also rejected an amendment that would outright ban naked credit default swaps, which basically are a bet on the future creditworthiness of a company or debt issuer. (The House version of financial reform did ban naked credit default swaps).
And the Senate rejected a proposed amendment that would have prohibited lenders (credit card lenders included) from charging an interest rate on any credit transaction (except real estate) that exceeds the maximum interest rate allowed by state law.
Debit swipe fees more closely reflect the cost of fraud protection than do credit card fees, which the Durbin Amendment leaves untouched.
"It is very difficult having a standup debate with you because you never take responsibility for any vote, " Clinton said after attacking Obama for not supporting a Senate amendment that would have capped the interest rate on credit cards at 30 percent.
However, as a result of key loopholes within the law as well as strategic industry reaction to its provisions, the Durbin Amendment will actually result in a restructuring of the credit card and prepaid card markets rather than any long-term merchant savings.
To his credit, he does acknowledge that the First Amendment has something to say about the video game issue, but whenever I hear a deflection like this one, I hear the tacit message that the Second Amendment is a sacred right while the First is an unnecessary burden.
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Mecca noted that other credit unions are already changing their terms in response to the amendment.
Like credit cards, prepaid cards are also unregulated by the Durbin Amendment.
It also argues the Durbin amendment, which caps fees on debit cards, will drive banks to push customers toward using credit cards instead.
The aim of the amendment was to push some debit card transaction costs from retailers onto their banks that assume consumer credit risks and process transactions.
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Instead, it spoke in dire terms of the possibility that America could lose its AAA credit rating, and advocated spending cuts, spending caps, and a balanced budget amendment to the Constitution as the solution.
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Last week, the Senate passed an amendment sponsored by Senator Dick Durbin (D-Ill.) that could reduce interchange fees that credit card processors charge to merchants and allow stores to give customers discounts for paying with cash, check or debit cards.
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"A waiver of the Jackson-Vanik amendment would pave the way for restored Soviet access to both direct U.S. government loans and credit guarantees and, in effect, encourage our allies to continue -- and even expand -- taxpayer-subsidized financial transfers, " says Roger W. Robinson, former senior director for international economic affairs at the National Security Council and member of the Center's Board of Advisors.
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