WASHINGTON May 19 The U.S. Senate rejected a
proposal on Wednesday that would have allowed states to limit
credit-card interest rates as part of a sweeping overhaul of
The 35 to 60 vote was a victory for large banks that have
already suffered several legislative defeats in the biggest
rewriting of Wall Street rules since the 1930s.
The amendment would have allowed states to enforce usury
caps on the interest rates charged by credit-card issuers
located beyond their borders.
Many states have laws on their books that cap interest
rates far below the punitive rates some issuers charge
delinquent borrowers, but they do not apply to out-of-state
National credit-card issuers such as JPMorgan Chase & Co
(JPM.N) and Bank of America Corp (BAC.N) base their credit-card
subsidiaries in business-friendly states such as Delaware and
South Dakota that do not limit interest rates.
(Reporting by Andy Sullivan; editing by Andrew Hay and Andre