Lawmaker Won't Defer On SecondaryCapital

WASHINGTON - (09/28/04) -- The chief congressional champion ofalternative capital options for credit unions said Monday he won'tback off his legislative efforts, even after a report by therespected Government Accountability Office doubting the need forsecondary capital. "I'm going to push forward with it," Rep. BradSherman, D-Calif., told The Credit Union Journal after speaking toNAFCU's Congressional Caucus. But Sherman said the short-termprospects are not good for initiatives that would give creditunions access to secondary capital and allow them to count it asnet worth under NCUA's minimum capital, or prompt correctiveaction, rules. Sherman's remarks come two weeks after the GAOissued a report finding there is no 'compelling need' for secondarycapital among credit unions. Sherman also said he plans toreintroduce a bill next year that would allow credit unions toprovide check cashing and wire transfers to non-members withintheir fields of members. A similar bill was introduced in thisCongress by Rep. Doug Ose, R-Calif., who is retiring at the end ofthe year.