CUNA wants any consumer financial products regulator not to have any examination powers for any credit union while the ABA wants no new consumer regulatory agency.
"The new agency shouldn't have to worry about credit unions and should focus on the bad actors," said CUNA Vice President Ryan Donovan in an interview. "If credit unions aren't already protecting consumers, they are not going to have members.
ABA President Edward Yingling said in a statement the measure introduced today by Senate Banking Committee Chairman Christopher Dodd (D-Conn.) would "subject traditional banks, which did not cause this crisis, to heavy new regulation, while non-banks will have an even further competitive advantage."
Dodd's bill would create a new regulatory entity housed inside the Federal Reserve and credit unions with assets of more than $10 billion would be subject to examination by the new regulator. Only three credit unions would be subject to such regulation.