Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-According to CUNA Vice President of Legislative Affairs and Senior Legislative Counsel Gary Kohn, the bankers are being warned not to raise the issue of NCUA’s mutual savings bank conversion disclosure rules at any mark-up of the regulatory relief bill. As far as a date for the mark-up, the lobbyist said, “Nothing is scheduled. There are discussions underway.” He noted that Hurricane Katrina could complicate this and other legislative and political issues of interest to credit unions. Kohn said changing the law to amend NCUA’s regulations concerning disclosures on credit union conversions to mutual savings banks would not be “in the same spirit of what [lawmakers] are talking about.” Congress is trying to keep the bill as clean as possible so it remains non-controversial and will pass fairly easily. The bankers’ objections to the credit union provisions are not much of a problem, particularly in light of the major hurdle the legislation faces on Industrial Loan Companies with top legislators on either side of the issue. However, Kohn said CUNA is still working to add the Prompt Corrective Action reform provision from the Credit Union Regulatory Improvements Act (H.R. 2317) onto the bill. A mark-up in the House Financial Services Committee could come some time this fall, Kohn said, but it will depend on how long Congress stays in session this year as to whether it will see any floor time. Whether we will see a bill in the Senate, he said, “is totally dependent on how long Congress stays in,” as well. Right now, Congress’ adjournment date is very flexible and they often run over in non-election years. House Financial Services Committee Members Jeb Hensarling (R-Texas) and Dennis Moore (D-Kan.) introduced the Financial Services Regulatory Relief Act (H.R. 3505) on July 28. The American Bankers Association, America’s Community Bankers, and the Independent Community Bankers of America did not respond to questions on whether they planned to raise the issue or if committee staffers had warned them. New News on Reg Relief Included in the credit union section of H.R. 3505 is a provision modifying the Federal Trade Commission’s responsibilities under Section 43 of the Federal Deposit Insurance Corp. Improvement Act. Under the law, the FTC is charged with enforcement of disclosure notices by non-federally insured depository institutions and related items. Section 315 of the reg relief bill would update the dates included in the 1991 law; repeal the provision prohibiting non-federally insured depository institutions from using instruments of interstate commerce, such as the U.S. Mail; and gives the state regulatory authority to enforce the audit provisions of the law, while FTC would still handle the disclosures, according to Rachel Dawson of the FTC. CUNA is not opposing the provision, Kohn said. A NAFCU representative was unable to comment by press time. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.