Thursday, July 14, 2011
Bonneville Bancorp subsidiary Bonneville Bank, located in Provo, Utah, has been exempted from requirements of the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Bonneville Bank appears as an exempted bank on the list published by the Federal Reserve Board on July 12, 2011.
The Durbin Amendment stipulates that debit card issuing banks that have assets of less than $10 billion are exempted from the interchange fee restrictions imposed by the Fed and that go into effect Oct. 1, 2011.
In March 2010, SellingPrepaid reported that Green Dot Corp. filed paperwork with the U.S. Securities and Exchange Commission for its initial public offering (which took place in July 2010). In an apparently related filing, the Monrovia, Calif.-based prepaid card company applied through the Federal Reserve Bank of San Francisco to become a bank holding company by acquiring Bonneville Bancorp of Provo, Utah. The acquisition reportedly would allow Green Dot to issue its own prepaid cards.
In January 2011, Green Dot issued a press release that stated Bonneville Bank was selected by the U.S. Department of Treasury to be the prepaid debit card issuer for the Treasury's tax refund pilot program; additionally, Bonneville Bank selected Green Dot to be the program manager for the pilot.
The Fed also published a list of banks that are not exempted from the Durbin Amendment. Both lists are available at www.federalreserve.gov/paymentsystems/debitfees.htm .
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