DOJ Permits Banks To Create Real-Time Payment System

On September 21, the Department of Justice cleared the way for a group of the twenty-four largest U.S. banks to create a real-time payment system that will permit immediate transfer of funds between financial institutions. The system was proposed by The Clearing House Payments Co., LLC ("TCH"), a joint venture between the twenty-four banks that hold approximately sixty percent of all U.S. deposits.

In a letter from the Antitrust Division, the DOJ acknowledged that collaboration between competitors can harm competition, but it expressed optimism that the venture could have a pro-competitive impact. "None of TCH's currently-proposed rules seem to limit rivals' ability to access [real-time payments] in a way that appears to be anticompetitive, although we note that TCH retains the right to change its rules at any time, and it has complete discretion over enforcement and implementation decisions," wrote Andrew C. Finch, Acting Assistant Attorney General. "The department