This is definately a bank issue. When we covered the first Washington protest the week before Bush signed the UIGEA into law we reported that the banks already had succeeded in lobbying against the law. Unfortunately, what we heard was a rumor and we still have not been able to confirm it, however, it is now understood to be more than a rumor, that banks have indeed succesfully lobbied out some of the requirements put on them to enforce this bill. The latest we have heard is that once the regulations are put into place some regulations will be too difficult for the banks to implement and they will not be required to implement them, thus the industry will not be completely shut off to depositing/withdrawing methods.
All that being said, the restrictions are still too difficult for banks to implement and that, along with the PPA support, along with the brand new WTO ruling, is what I personally believe Frank will use to repeal the UIGEA.