Congress Undaunted On SecondaryCapital

WASHINGTON - (09/09/04) -- A new government study doubtingcredit unions' need for alternative sources of capital won'tdiscourage the main congressional backer of the secondary capitalfor credit unions. Congressman Brad Sherman said Wednesday he isnot detered by the report by the General Accountability Officedisputing the need for secondary capital. "I would like to thankthe GAO for this contribution to the ongoing discussion of creditunion capital," said Sherman. "However, it is by no means the lastword on the issue." The California Democrat, who requested the GAOreport, said he will continue working with his colleagues on theHouse Financial Services Committee and with credit unionrepresentatives to address the capital needs of credit unions. TheGAO report found that credit union worries about declining capitaland new minimum capital standards under PCA do not warrantlegislation allowing credit unions to raise alternative forms ofcapital.