ARLINGTON, Va. - (06/29/05) NAFCU has sent a letter toSenate Banking Committee Chairman Richard Shelby refuting FDIC ViceChairman John Reichs recent testimony suggesting that creditunions have an unfair competitive advantage over banks.Reichs testimony, submitted to the Senate BankingCommittees hearing on regulatory relief, argues thatNCUAs approval of ever-expanding fields ofmembership, combined with the ability to offer a full rangeof products and services without having to pay federal taxes andwithout laboring under the Community Reinvestment Act gives creditunions advantages that make for an uneven playing field, acondition that Congress should re-examine and seek toresolve. But NAFCUs letter suggests this simplyisnt true, noting that: credit unions continue to hold just1.4% of domestic financial assets, as they have for the last 25years; a Treasury Department study concluded that creditunions are not a threat to the viability and profitability of otherinsured institutions; and the commercial banking industry continuesto rake in record-breaking profits, among other points. Moreover,NAFCU asserted, CRA was imposed on banks as thrifts because theyhad been engaged in red-lining, while CUs were exempt from CRAbecause Congress determined the CU movement was not engaging inthis practice. In conclusion, NAFCU writes,credit unions do not have a competitive advantage overbanks. In fact, credit unions are more highly regulated than anyother type of financial institution.
-
The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
44m ago -
Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
49m ago -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
1h ago -
Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.
1h ago -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
2h ago -
The bank is launching KeyVAM, a virtual account management offering it designed with fintech Qolo. Both companies said the nature of the relationship was as important as the technology it produced.
6h ago