Senators Sponsor CU Amendments on Reg Restructuring
The chairman of the NCUA would be included in the council of regulators that could make decisions on systemic risk and hear appeals of rules by the new consumer financial regulator if an amendment sponsored by Sen. Susan Collins (R-Maine) is approved.
Because the House-passed version of the regulatory overhaul bill includes the NCUA chairman on the Financial Stability Oversight Council, the amendment would "help harmonize the House and Senate bills with respect to oversight of the Consumer Financial Protection Agency or Bureau, particularly in regard to the credit union system," NCUA Chairman Debbie Matz wrote Collins in a letter.
Both CUNA and NAFCU also wrote letters endorsing the amendment and said it would ensure that credit unions had a voice in the review of consumer regulations.
Sen. Lisa Murkowski (R-Alaska) has proposed amendments to exempt all financial institutions with assets of $5 billion or less from any rules issued by the new consumer regulator.
As currently written, all financial institutions must comply with the regulations issued by the new entity but only those with assets of $10 billon or more would be examined by the new regulator.
Yesterday, on a voice vote the Senate approved an amendment by Sen. Olympia Snowe (R-Maine) to strike language from the legislation that would have required credit unions and other financial institutions to provide the new consumer financial regulator with detailed information about the number and amount of deposits by census tract and other demographic data.
CUNA and NAFCU had pushed for this amendment and said it would impose compliance burdens to small credit unions and duplicate existing requirements that the NCUA has in place.