Stop and study act passes committee
The Risk-Based Capital Study Act, HR 2769, passed the House Financial Services Committee on Wednesday with a 50-9 vote. Voting yes from the Alabama and Florida delegation on the committee included Reps. Bill Posey (R-FL), Terri Sewell (D-AL), Patrick Murphy (D-FL), and Dennis Ross (R-FL). Watch this recording of the committee hearing and at the 1:12:00 mark, Rep. Posey talks about why the legislation is needed saying nearly every credit union member is behind the act. He praises the work by the League, as well. The act now moves to the full House.
Committee Chairman Jeb Hensarling (R-TX) laid out in his opening remarks the need for the legislation.
“Just as the House should have been more deliberative before acceding to the Senate on Section 953(b), the National Credit Union Administration – the NCUA – should have been more deliberative with its proposed rule to amend risk-based capital requirements for credit unions. Many are concerned the NCUA’s proposal is a solution in search of a problem,” said Hensarling.
NCUA Chairman Debbie Matz sent the committee a letter explaining more of why the board feels the RBC rule is necessary. She writes that “the Federal Credit Union Act’s requirements for a risk-based capital rule comparable to banks, the fact that the agency has studied the issue since 2011, and that the rule has not been updated in 15 years.”
The League is hearing that the NCUA board is expected to finalize RBC 2 at its October board meeting. Also passed on Wednesday is a bill requiring more oversight of the Consumer Financial Protection Bureau and creates an independent inspector general for the CFPB.