Partnering With Banks A Mistake, Analysts Say
WILMINGTON, N.C.-The fact credit unions partnered with banks to fight the Durbin rule may have been a mistake, two analysts suggest.
The CU industry may have been better off keeping the cap at 12 cents to create greater separation between bank and credit union debit interchange, suggested Bob Giltner, chief DDA strategist for Velocity Solutions, and Michael Kelly, president and CEO of PSCU Financial Services.
"I was part of a conference right before the Durbin vote and the joke was the worse the news the better," said Giltner. "That may be a little strong because a leak in the boat can sink whole boat. Nevertheless, in the near term . . ."
Kelly offered that credit unions may have helped big banks by protesting the proposed 12-cent cap so loudly. "That is true if you believe the two-tiered schedule will work," he said.