INTERCHANGE RULE WOULD INCREASE EARNINGS, HOME DEPOT EXEC SAYS

 The Federal Reserve’s interchange proposal could translate into an additional $35 million per year profit for Home Depot, a company executive said yesterday during a conference call regarding the retailer’s fourth quarter profits.

“[T]he Durbin amendment asked the Federal Reserve to determine what reasonable and proportionate fees should be for debit, and debit makes up about 17 percent of our tender penetration,” said Home Depot Chief Financial Officer, Principal Accounting Officer, and Executive Vice President of Corporate Services Carol Tomé, in response to a question on the possible effects of the Durbin amendment. “Based on the Fed’s draft regulation, we think the benefit to The Home Depot could be $35 million a year.”

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