CU Trades Remain Watchful As Congress Tackles ‘Reform’

WASHINGTON–Despite positive signs that lawmakers on both sides of the aisle support an independent credit union regulator, credit unions lobbyists are gearing up to defend the movement as President Obama’s financial regulatory reform package makes it way through Congress. NAFCU and CUNA cited statements from Treasury Secretary Tim Geithner indicating support for an independent CU regulator even after the White House unveiled a regulatory reform package calling for consolidation of financial regulators and the creation of a consumer watchdog group for added accountability; while a letter from U.S. Rep. Spencer Bacchus (R-AL), outlined the GOP’s counterproposal, which also indicated support for an independent CU regulator. Even so, the credit union trade groups are keeping a close eye on the issue. “As lawmakers work toward the July 4 recess, we continue to advocate for an independent NCUA and credit union charter,” said Brad Thaler, a NAFCU lobbyist. “Some of the language we are seeing is open to interpretation.” Thaler said Congress and the White House are hoping to get the reg reform package through by the end of the year, with a series of hearing in the House expected by the end of the Summer, while Senate Banking Committee Chairman Chris Dodd has indicated his committee won’t take it up until fall.