A district court judge delivered a blistering rebuke of the Federal Reserve Board on Wednesday, tossing out a central bank rule that caps debit card transaction fees and saying the central bank exceeded its authority.

The ruling is a big blow to bankers who had reluctantly come to accept the roughly 24 cent per transaction cap, and a significant victory for Sen. Richard Durbin, D-Ill. and retailers, both of whom had said the Fed's cap was set far too high. The decision, if not overturned, could cost banks several billions of dollars annually, on top of the more than $6 billion banks have already lost due to the Durbin Amendment.

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