Reg reform: new developments significant to credit unions
05/06/2010 09:09 am
S. 3217, the Restoring American Financial Stability Act, would affect the credit union system by limiting the National Credit Union Administration's (NCUA) regulatory authority to credit unions with under $10 billion in assets. The regulatory reform package would also address many issues facing the broader financial services industry. CUNA continues to lobby to not limit the NCUA's oversight of credit unions, regardless of asset size.
Below are a few developments significant to credit unions from yesterday's debate in the Senate.
The Senate passed a CUNA-supported amendment offered by Senator Olympia Snowe (#3755) to strike from the bill the language that would require the collection of deposit account data. This is a victory for credit unions, one that we have been working on since this legislation was first proposed last week. Keep in mind, however, that language similar to what was removed by the Senate is in the House-passed version of this legislation; so, this will be an issue that will need to be resolved in conference and we will continue to lobby to keep this language out of the final bill.
Efforts on interchange are aimed not only at winning a vote, but also at preventing a vote from taking place in the first place. As part of the ongoing campaign in opposition to Senator Durbin's interchange amendments, yesterday, CUNA sent a joint letter with the Independent Community Bankers of America focusing on the effect of the amendments on community-based financial institutions.
Click here to view the letter. CUNA will be sending a second letter with other members of the Electronic Payments Coalition today. CUNA and the LSCU strongly encourage you to continue grassroots efforts in opposition to these amendments, and we appreciate your help on this critical issue to credit unions.
Financial Stability Oversight Council
Another letter was sent to Senator Susan Collins in support of her amendment to add the NCUA Chairman to the Financial Stability Oversight Council. This amendment is also supported by NCUA. At this time, Senator Collins is working with Senator Dodd to include the amendment in the Manager's amendment.
Click here to view the letter.
By a vote of 93-5, the Senate approved an amendment offered by Chairman Dodd and Ranking Member Shelby aimed at resolving "too-big-to-fail institutions." The Senate also approved an an amendment offered by Senator Boxer aimed at ensuring that taxpayers are not called on to pay to liquidate failing financial firms, by a vote of 96-1.
The LSCU will continue to update you regularly as this legislation moves forward. If you have any questions regarding these or any issues involving the regulatory restructuring bill, contact anyone in Legislative Affairs.