643 F.3d 1158 (8th Cir. 2011), 11-1805, TCF Nat. Bank v. Bernanke

Docket Nº:11-1805.
Citation:643 F.3d 1158
Opinion Judge:MELLOY, Circuit Judge.
Party Name:TCF NATIONAL BANK, Plaintiff-Appellant, v. Ben S. BERNANKE; Janet L. Yellen; Kevin M. Warsh; Elizabeth A. Duke; Daniel K. Tarullo; Sarah Bloom Raskin, the Board of Governors of the Federal Reserve System, in their official capacities; John Walsh, Comptroller of the Currency, in his official capacity, Defendants-Appellees. American Bankers Associati
Attorney:Timothy D. Kelly, argued, Minneapolis, MN, Mark V. Meierhenry, William E. Blewett, Sioux Falls, SD, Sarah Elisabeth Bushnell, Minneapolis, MN, Benjamin R. Civiletti, William D. Coston, and Martin L. Saad, Washington, DC, on the brief, for appellant. Lindsey Powell, argued, Mark B. Stern, on the b...
Judge Panel:Before MURPHY, MELLOY, and SMITH, Circuit Judges.
Case Date:June 29, 2011
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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643 F.3d 1158 (8th Cir. 2011)

TCF NATIONAL BANK, Plaintiff-Appellant,

v.

Ben S. BERNANKE; Janet L. Yellen; Kevin M. Warsh; Elizabeth A. Duke; Daniel K. Tarullo; Sarah Bloom Raskin, the Board of Governors of the Federal Reserve System, in their official capacities; John Walsh, Comptroller of the Currency, in his official capacity, Defendants-Appellees.

American Bankers Association; Consumer Bankers Association; Credit Union National Association; Financial Services Roundtable; Independent Community Bankers of America; Mid-Size Bank Coalition of America; State Bankers Associations; National Association of Federal Credit Unions; Economists and law and economics scholars; The Clearing House Association L.L.C., Amici on behalf of Appellant,

Merchants Payment Coalition; Retail Litigation Center; MDL-1720 Class Plaintiffs, Amici on Behalf of Appellee.

No. 11-1805.

United States Court of Appeals, Eighth Circuit.

June 29, 2011

         Submitted: June 16, 2011.

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[Copyrighted Material Omitted]

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         Timothy D. Kelly, argued, Minneapolis, MN, Mark V. Meierhenry, William E. Blewett, Sioux Falls, SD, Sarah Elisabeth Bushnell, Minneapolis, MN, Benjamin R. Civiletti, William D. Coston, and Martin L. Saad, Washington, DC, on the brief, for appellant.

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          Lindsey Powell, argued, Mark B. Stern, on the brief, Washington, DC, for appellee.

          Seth P. Waxman, Steven P. Lehotsky, Wilmer Cutler Pickering, Gregory F. Taylor, Eric L. Richard, Karen M. Thomson, Rich Whiting, Washington, DC, Christopher R. Lipsett, Noah A. Levine, Pamela K. Bookman, Paul Saltzman, Rob Hunter, H. Rodgin Cohen, Matthew A. Schwartz, New York, NY, Roger W. Damgaard, James A. Power, Sioux Falls, SD, Carrie R. Hunt, Steven I. Zeisel, Arlington, VA, and Mike Cahill, Los Angeles, CA, on the brief, for amici curiae Clearing House Association, L.L.C., American Bankers Association, Consumer Bankers Association, Credit Union National Association, The Financial Services Roundtable, Independent Community Bankers of America, Mid-Size Bank Coalition of America, and National Association of Federal Credit Unions.

          Ronald A. Parsons, Jr., Sioux Falls, SD, and Todd J. Zywicki, Arlington, VA, on the brief, for amicus curiae Economists and Law and Economics Scholars.

         Joseph J. Witt, Eden Prairie, MN, on the brief, for amicus curiae State Bankers Associations.

          W. Stephen Cannon, Todd Anderson, Richard O. Levine, Washington, DC, Thomas K. Wilka, Sioux Falls, SD, Jeffrey I. Shinder, A. Owen Glist, New York, NY, on the brief, for amicus curiae The Retail Litigation Center, Inc.

          Douglas Kantor, Shannen W. Coffin, Washington, DC, on the brief, for amicus curiae Merchants Payments Coalition.

          K. Craig Wildfang, Thomas J. Undin, Minneapolis, MN, on the brief, for amicus curiae MDL-1720 Class Plaintiffs.

          Before MURPHY, MELLOY, and SMITH, Circuit Judges.

          MELLOY, Circuit Judge.

         TCF National Bank sued to enjoin a portion of the Dodd-Frank Wall Street Reform Act of 2010 that will limit the rate some financial institutions may charge for processing debit-card transactions. At the outset of the proceedings, TCF moved for a preliminary injunction, and the district court 1 denied the motion. We affirm.

         I.

         On July 21, 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Pub.L. No. 111-203, 124 Stat. 1376 (2010). Section 1075 of the Act, known as the Durbin Amendment, amended the Electronic Fund Transfer Act, 15 U.S.C. § 1693 et seq., by adding several provisions regulating debit-card interchange fees. The new provisions authorize the Board of Governors of the Federal Reserve System (" Board" ) to set the " interchange transaction fee that an issuer [of debit cards] may receive or charge with respect to an electronic debit transaction." § 1693 o -2(a)(1). By statute, " [t]he amount of any interchange transaction fee that an issuer may receive or charge with respect to an electronic debit transaction shall be reasonable and proportional to the cost incurred by the issuer with respect to the transaction." § 1693 o -2(a)(2).

          The new provisions also charged the Board with promulgating regulations " to establish standards for assessing whether the amount of any interchange transaction fee ... is reasonable and proportional to the cost incurred by the issuer with respect to the transaction." § 1693 o -2(a)(3)(A). In making this determination, the Board is to " consider the functional similarity between ... electronic debit

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transactions[ ] and ... checking transactions that are required within the Federal Reserve bank system to clear at par." § 1693 o -2(a)(4)(A). The Board must further distinguish between " the incremental cost incurred by an issuer for the role of the issuer in the authorization, clearance, or settlement of a particular electronic debit transaction" and " other costs incurred by an issuer which are not specific to a particular electronic debit transaction." § 1693 o -2(a)(4)(B). The latter costs " shall not be considered" by the Board. Id. Importantly, issuers with " assets" less than ten billion dollars are exempt from these regulations. § 1693 o -2(a)(6).

         TCF is a national banking association with assets in excess of ten billion dollars. TCF issues debit cards along with its checking accounts and currently uses the Visa...

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