Fred Becker, CEO, NAFCU: “The (Blueprint) fails to take into account the unique role of credit unions and the benefits they provide to the American consumer. The Treasury blueprint calls for consolidation of the national bank, national savings association and federal credit union charter into a single ‘federal insured depository institution’ charter. While not specifically stated, it appears that Treasury is also seeking to create a single federal deposit insurance fund to replace FDIC coverage and the NCUSIF,” Becker said, adding, “NAFCU was established to create an independent regulator for federal credit unions and a federal insurance fund that we believe provide the necessary safeguards for a healthy credit union system. The value of the current, separate federal regulatory and share insurance structure for credit unions is undeniable.”
Cliff Rosenthal, executive director, National Federation of CDCUs: “Merging NCUA with other financial regulators is unwarranted and potentially harmful to the entire credit union system. While there have been isolated problems with credit unions over the last year or two, they have very little to do with the current economic downturn and subprime mortgage crisis. Overwhelmingly, credit unions maintain a conservative, consumer-friendly book of business... Rather than putting the cooperative financial system at risk through a wholesale overhaul of the regulatory structure, policymakers should look for ways to strengthen the credit union system ... while increasing oversight of the institutions responsible for the collapse in the housing markets.”
Dan Mica, CEO, CUNA: “The strategy regarding credit unions reveals Treasury’s apparent total disregard for the uniquely democratic and consumer-owned structure of credit unions and the pocket book benefits from better rates and services their consumer/members are provided. (The proposal) would eliminate one of the few sectors of the financial services industry that has consistently acted in the best interest of consumers... Congress should make a strong statement regarding the important role that credit unions play in helping America’s consumers through these difficult economic times by quickly enacting H.R. 1537 (CURIA).”
Mary Martha Fortney, CEO, NASCUS
“The Treasury’s proposal is rather vague on how or whether state-chartered credit unions would fall under this new federal insured depository institution charter, which is defined as replacing the national bank, federal savings association and federal credit union charters.
“Clearly, at this point, the plan creates more questions than answers for the state credit union system. NASCUS is very concerned, though, about the Treasury proposal’s far-reaching implications, including preemption of state authority and state regulation of state-chartered institutions. NASCUS would oppose any efforts to eliminate the state credit union charter.
“NASCUS will continue to review the proposal and work with Treasury and others to ensure that that state authority is maintained over state-chartered institutions. It is the role of state governments to determine proper regulation of its state-chartered institutions including credit unions. The dual chartering system, which has worked so well for so many years, is threatened by the preemption of state laws and the push for uniformity.”
