WASHINGTON-Fresh from a tour of Hurricanes Rita and Katrina's devastation, CUNA President and CEO Dan Mica wrote Congressman Richard Baker (R-La.) of the need for Prompt Corrective Action reform for credit unions. Particularly in light of the recent hurricanes, a risk-based PCA system would help credit unions aid victims to regain their financial footing. Mica told Baker in an Oct. 20 letter that credit unions' help in the hurricane-stricken areas is hamstrung by current PCA constraints. He reiterated from an earlier letter CUNA's support for the PCA reform integrated into Baker's H.R. 3945, the Hurricane Katrina Financial Services Relief Act of 2005, which was on the suspension calendar for House consideration at deadline. "One of the most important aspects of your bill is the relief it would provide financial institutions from Prompt Corrective Action (PCA)," Mica wrote. "This is critically important and will significantly assist affected credit unions as they work with their regulators to restore their stability. "Permanent reform of PCA continues to be a priority for our members, and we welcome the opportunity to work with you to achieve this objective. Meaningful, long-lasting improvements in PCA will benefit credit unions in your state as well as those in the rest of the country."

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