WASHINGTON – The credit union lobby began the debate on the massive bank reform bill working to carve out credit unions from data collection requirements in the measure and on the lookout for other new burdens.
"While well-intentioned, it is important to remember that credit unions already provide a wide range of information to the NCUA,” said Dan Berger, chief lobbyist for NAFCU, of a provision in the bill that would require federal regulators to collect data on deposits. NAFCU and CUNA are working with Maine Sen. Olympia Snowe on an amendment that would exempt credit unions and community banks from the measure.
The data collection provision would require that credit unions maintain detailed records about member account deposits, including the type of deposit and the geographical location of the customer initiating the transaction.
“Mandating that credit unions maintain and report additional records about customer account deposits, including the type of deposit and the geographical location of the customer initiating the transaction, would increase the regulatory burden for credit unions, especially smaller institutions,” Berger told Credit Union Journal. “Senator Snowe’s amendment to strike these onerous requirements is a positive step toward reducing the cost of compliance that credit unions will experience under this sweeping legislation."
The credit union lobby also is working to expand an exemption from being examined by the proposed consumer financial protection agency to include all credit unions. The exemption in the bill would cover all credit unions with less than $10 billion in assets, leaving three institutions – Navy FCU, Pentagon FCU and North Carolina State Employees’ CU – to be examined by the new consumer agency.
Debate on the 1,600-page bill began yesterday and is expected to take as long as two weeks while senators vote and debate dozens of amendments.
Sponsors of the bill on Tuesday agreed to eliminate a $50 billion fund that would have been created by assessments on big financial institutions and used to resolve large failures down the road.
