The US banking industry could lose billions of dollars in annual interest payments, according to a study that warns of credit card lenders raising prices after a regulatory overhaul, the FT said. The Federal Reserve board will meet this week to finalise changes to rules governing the $970bn credit card business. These rules would impose strict disclosure standards on credit card lenders and prohibit common pricing practices that have drawn fire for exposing borrowers to unforeseen costs. Widely hailed by consumer groups as urgently needed reforms to protect borrowers, the changes could lead to the banking industry losing more than $10bn in annual interest payments, says a study by the law firm Morrison & Foerster. This could prompt credit card lenders to raise prices and tighten lending standards, reducing the availability of credit for US consumers.
