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The Future of the Payments Industry

Wednesday, February 15th, 2006 

The credit card sector of the payments industry has emerged as a major force in the financial systems of the United States and other countries. The card networks currently process over $5 trillion annually in payments. Most Americans now carry at least one credit card, many have several. At the same time, the credit card networks have been the focus of much attention by courts and regulators in the United States and abroad. The current “hot topic” is interchange fees – the fees that merchants pay when consumers use their credit cards. The central bank of Australia now regulates those fees; the fee setting process is subject to continuing investigations in Europe; and the fees are the subject of several major class action lawsuits currently being litigated in the United States.

What lies ahead for the various credit card networks – American Express, Discover, Mastercard and Visa – and their users? The AEI-Brookings Joint Center is bringing together experts to discuss these issues in a symposium to be held on February 15, 2006 in Room B-340 of the House Rayburn Building, from 8:30 a.m. to 2:00 p.m. A breakfast buffet and lunch will be served.


AGENDA

Wednesday, February 15th, 2006
8:30 a.m. – 2:00 p.m.
B-340 Rayburn House Office Building
Washington, D.C. 20515

8:30 a.m. Registration and Breakfast
8:45 a.m. Introduction
ROBERT HAHN, AEI-Brookings Joint Center
9:00 a.m. An Overview of the Issues
RICHARD EPSTIEN, University of Chicago Law School
10:00 a.m. The Future of the Credit Card Industry
ROBERT LITAN, AEI-BROOKINGS Joint Center

ALEX POLLOCK, AEI
Discussant:
STEVE SALOP, Georgetown Law School
11:00 a.m. Antitrust and the Credit Card Industry: A Panel
LLOYD CONSTANTINE, Constantine Cannon, P.C. 
BEN KLEIN, LECG and University of California, Los Angeles
SCOTT SCHEELE, Department of Justice, Antitrust Division
12:15 p.m. Lunch and Keynote
CONGRESSMAN RICHARD H. BAKER (R-LA)
2:00 p.m. Adjournment

For more information, please contact Sasha Gentling at 202.862.5903 or [email protected].

Biographies

Congressman Richard H. Baker was elected to the U.S. Congress in 1986 to represent Louisiana’s Sixth Congressional District. After establishing his own real estate company, the Baker Agency, he began his public service at age 23. He was elected to the Louisiana House of Representatives in 1971 and served there for fifteen years. During that time, he served as Chairman of the House Committee on Transportation, Highways, and Public Works. Today, Congressman Baker is the Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. He also serves as member of the House Committee on Transportation and Infrastructure, and the Committee on Veteran’s Affairs. Congressman Baker is a lifelong native of Louisiana and is a graduate of Louisiana State University. He is married to the former Kay Carpenter, and they have two grown children.

Lloyd Constantine is the Chairman of Constantine Cannon, a commercial litigation firm in New York and Washington, D.C. He has extensive litigation experience at all levels of federal and state courts, including oral argument before the United States Supreme Court, and he has served as lead or liaison counsel in many complex and multi-state antitrust cases and investigations. Mr. Constantine is the former Assistant Attorney General in Charge of Antitrust Enforcement for the State of New York (1980-1991). He served as Chair of the Antitrust Task Force of the National Association of Attorneys General (NAAG) from 1985-89. Mr. Constantine was a member of McDermott, Will & Emery from 1991 through March 1994. He devoted the first eight years of his career to the Legal Services program, representing indigents in civil rights and civil liberties litigation. Mr. Constantine frequently testifies before Congress on antitrust and international trade issues. Mr. Constantine was an Adjunct Professor of Antitrust law at Fordham University School of Law from 1989 through 1996 and is a frequent lecturer, commentator and author on Competition Law and Policy in the United States, and abroad.

Richard A. Epstein is the James Parker Hall Distinguished Service Professor of Law at the University of Chicago, where he has taught since 1972. He has also been the Peter and Kirstin Bedford Senior Fellow at the Hoover Institution since 2000. Prior to joining the University of Chicago Law School faculty, he taught law at the University of Southern California from 1968 to 1972. He received an LL.D., h.c. from the University of Ghent, 2003. He has been a member of the American Academy of Arts and Sciences since 1985 and a Senior Fellow of the Center for Clinical Medical Ethics at the University of Chicago Medical School, also since 1983. He served as editor of the Journal of Legal Studies from 1981 to 1991, and as editor of the Journal of Law and Economics from 1991-2001. His books include Skepticism and Freedom: A Modern Case for Classical Liberalism; Cases and Materials on Torts; and Principles for a Free Society: Reconciling Individual Liberty with the Common Good.

Robert W. Hahn is co-founder and executive director of the American Enterprise Institute-Brookings Joint Center and a resident scholar at AEI. Previously, he worked for the Council of Economic Advisers. He also has served on the faculties of Harvard University and Carnegie Mellon University. Dr. Hahn frequently contributes to leading scholarly journals and general-interest periodicals, including the American Economic Review, Yale Law Journal, Science, and the New York Times. He is the author of Reviving Regulatory Reform: A Global Perspective and In Defense of the Economic Analysis of Regulation. In addition, Dr. Hahn is co-founder of the Community Preparatory School­­­­––an inner-city middle school in Providence, Rhode Island, that provides opportunities for disadvantaged youth to achieve their full potential.

Benjamin Klein is an internationally recognized expert on antitrust economics, intellectual property, industrial organization and damages. He has published widely on these issues and, over the past 25 years, has made numerous presentations to state, federal and foreign regulatory agencies and courts. A Professor of Economics at UCLA for 34 years, he has taught at the Economics Institute for Federal Judges and has served as a consultant to the U.S. Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice. He currently serves on the Board of Editors of five academic journals, including the Supreme Court Economic Review and the Antitrust Law Journal.

Robert E. Litan is the Vice President for Research and Policy at the Kauffman Foundation in Kansas City and a Senior Fellow in Economic Studies at the Brookings Institution. Dr. Litan was formerly Vice President and Director of Economic Studies at the Brookings Institution (1996-2003), and he currently directs the AEI-Brookings Joint Center on Regulatory Studies. An economist and an attorney who has practiced law and taught banking law at the Yale Law School, Dr. Litan is the author or coauthor of numerous books and articles on financial institutions, international trade, and regulatory issues. He has consulted for numerous organizations, public and private, and testified as an expert witness in a variety of legal and regulatory proceedings. Formerly, he was associate director of the Office of Management and Budget, deputy assistant attorney general in the Antitrust Division of the Department of Justice, and a regulatory specialist for the President’s Council of Economic Advisers.

Alex J. Pollock joined the AEI as a resident fellow in July, 2004. From 1991 until he joined AEI, Mr. Pollock served as president and CEO of the Federal Home Loan Bank of Chicago, a $90 billion housing GSE. At the Chicago FHLB, he was the architect of the innovative Mortgage Partnership Finance Program, which successfully created direct competition for Fannie Mae and Freddie Mac on a national basis. Mr. Pollock is a past president of the International Union for Housing Finance and the Bankers Club of Chicago; a director of Allied Capital Corporation, the Chicago Mercantile Exchange, the Great Lakes Higher Education Corporation, and the Great Books Foundation; and the author of numerous articles on banking, financial systems, and management.

Steven C. Salop is Professor of Economics and Law at the Georgetown University Law Center. His recent writings include several articles in the Yale Law Review, Georgetown Law Journal, American Economic Review, Antitrust Law Journal, and other scholarly journals. His research focuses on antitrust law and economics and economic analysis of industrial competition and imperfect information. Before joining the Law Center faculty in 1981, he served as Associate Director for Special Projects with the Bureau of Economics of the FTC, as an adjunct professor of economics at the University of Pennsylvania, and as an economist with the Civil Aeronautics Board and Federal Reserve Board. He is a member of the American Economic Association and the Econometric Society. He has been an associate editor of the Journal of Economic Perspectives, The International Journal of Industrial Organization and the Journal of Industrial Economics. He is currently an associate editor of the Review of Industrial Organization.

Scott A. Scheele is the Assistant Chief of the Networks and Technology Enforcement Section of the Antitrust Division of the U.S. Department of Justice. His work includes merger and civil non-merger investigations in high technology and financial markets, including computer software and electronic trading of securities. Mr. Scheele has participated in many of the Division’s most significant cases and investigations. From 1997-1998, Mr. Scheele served as a Special Assistant United States Attorney in the Eastern District of Virginia U.S. Attorney’s Office. Prior to joining the Government in 1995, he was an associate at Howrey & Simon in Washington, D.C., where his work focused primarily on complex litigation involving antitrust issues. Mr. Scheele has been a featured speaker at numerous conferences primarily relating to antitrust litigation and the intersection of intellectual property and antitrust law.