The NCUA would remain a separate agency and not part of a consolidated bank regulator, but credit unions would face an additional layer of regulation and examination by the Consumer Financial Protection Agency, under a regulatory overhaul plan unveiled today by Senate Banking Committee Chairman Christopher Dodd (D-Ct.).
Dodd's bill would combine the regulatory powers of four existing agencies over banks and thrifts into the Financial Institutions Regulatory Administration. The NCUA would remain the safety and soundness regulator for credit unions.
But the NCUA would lose some of its jurisdiction on consumer issues to the proposed Consumer Financial Protection Agency. The bill says the CFPA shall assess fees on financial institutions with assets greater than $10 billion, including credit unions and can assess fees on those with assets of $10 billion and smaller.
It also would allow states to pass tougher consumer law than the federal government and prevents federal law from preempting state laws.
There is no carve out for smaller credit unions and community banks, as there is in the bill passed last month by the House Financial Services Committee.
Dodd's bill also includes credit unions in the payment, clearing and supervision section on mitigating systemic risk.
Dodd's committee is likely to begin consideration of the measure in December. House Financial Services Committee Chairman Barney Frank (D-Mass.) has said he hopes that the full House will consider the legislation that is currently working its way through that chamber during the first week of December.
