WASHINGTON – House leaders are planning to combine the credit union regulatory relief act, known as CURRA, with a regulatory relief measure for banks to ease passage of the credit union bill, according to several sources.
Credit union lobbyists yesterday were reviewing the congressional strategy, aimed at eliminating objections by either of the two traditional foes. This way, the bankers would get their bill by holding off their opposition to the credit union bill.
The combined bill is expected to be voted on the House’s so-called suspension calendar, reserved for non-controversial measures. Bills on the suspension calendar usually are voted by voice, eliminating lawmakers from having to be recorded, and thus more easily held accountable by interest groups.
CURRA is similar to CURIA, the CU Regulatory Improvements Act, without two provisions objected to by the banks – but considered the most important by credit unions. The missing provisions would lift the current cap on member business loans and enact a risk-based capital system for credit unions.
As with CURIA, CURRA would: allow credit unions to retain their select groups after converting to community charter; exempt credit unions from the pre-merger notification requirements of the Clayton Antitrust Act; increase the amount individual credit unions can invest in a CUSO to 3% of capital from the current 1%; and, allow NCUA, rather than Congress, to determine permissible investments for credit unions.
CURRA also would give NCUA greater flexibility in setting the annual interest rate ceiling and ease credit union participation in the U.S. Small Business Administration's Section 504 program.
