Visa, MasterCard React to Wall Street Reform Bill
Wall Street lobbyists couldn't stop the Senate from approving a financial reform bill that critics say could hamper credit card issuers' ability to lend. While most of the bill's measures target derivatives trading and other high-risk financial activity, a new wave of rules would restrict cash flow to consumer and small business credit lines. Tighter capital restrictions would require banks to keep more cash on hand, mirroring a temporary move in 2008 that resulted in lower credit card limits.

The credit card industry's reactions ranged from indifference to dismay. A Visa spokesperson told Reuters that the payment platform provider was "disappointed" about a late amendment to the bill curbing interchange fees for signature debit card transactions. Visa and MasterCard shares took major hits on global stock exchanges after the Senate's vote was announced. Senate and House lawmakers must now reconcile individual versions of their bills before completing a final vote this summer.

About the Author


Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.