Federal Reserve Chairman Ben Bernanke Acknowledges that Federal Reserve Debit Card Rule Could Hurt Consumers, Small Financial Institutions

In response to questions, Chairman Bernanke acknowledged that the rule’s so-called “carve-out” for small institutions may not work, saying, “There is some risk that the exemption will not be effective, and that is the interchange fees available to smaller institutions will be reduced to the same extent we would see it at larger banks.”