What Else Is In TheBank Reform Bill?

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WASHINGTON-Although credit unions have been focused on the Durbin amendment related to interchage reform, the mammoth bank bill-almost 2,300 pages long-contains several other provisions that will directly affect credit unions:

* It will create a consumer financial protection bureau inside the Fed that will set rules for financial products. The final language, however is expected to exempt credit unions under $10 billion from being examined by the new bureau, leaving that to their existing regulators at NCUA or the states.

* It will make permanent the increase in federal deposit insurance coverage under the National CU Share Insurance Fund and the FDIC to $250,000 per account.

* It will set new "skin-in-the-game" rules on the sale of mortgages on the secondary market, requiring all mortgage originators to retain at least 5% of the mortgages they sell.

* It will require certain generic financial derivatives, like interest rate swaps and options, held by several corporate credit unions and a handful of natural person credit unions, be traded over exchanges and clearinghouses to provide transparency.

* The bill will also set a new watchdog for so-called too-big-to-fail financial institutions; create new rules for Wall Street rating agencies; and separate the most risky financial derivatives trading operations from federally insured financial institutions.

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