NCUA Director of Public and Congressional Affairs John McKechnie pointed out, "It includes the FASB language, which the agency has put as a priority." It has "far-reaching effects," he said, explaining that without the net worth definition change, both voluntary and involuntary mergers would be curtailed because the merging institution's net worth would no longer be added to the surviving credit union's net worth after a new accounting standard from the Financial Accounting Standards Board becomes effective.

JoAnn Johnson, chairman of NCUA, noted the legislation's key points and emphasized the net worth definition change also. "I am hopeful that the process moves ahead expeditiously in the House of Representatives, and that a bill reaches the President in the near future," she said. "We look forward to continuing to work with the next Congress on additional improvements such as prompt corrective action reform and increased member business lending flexibility." How the bill will progress is anyone's guess, according to CUNA Vice President of Legislative Affairs Dean Sagar. Initially, indications were that House Financial Services Committee Chairman Mike Oxley (R-Ohio), who is retiring at the end of this session, would accept the Senate bill. However, the political situation has changed, Sagar explained. "The recent revelations of current accounting problems by Fannie Mae has given new life to the GSE bill.I think that would be the preferred bill that Oxley would want to chair a conference on," the career Hill staffer turned lobbyist said. He added that Senate Banking Committee Chairman Richard Shelby (R-Ala.) has requested floor time for the bill to reform the regulation of the government-sponsored enterprises. With that legislative work advancing it "clouds the prospects" for a conference committee on regulation relief, where the credit unions and banks could work to get additional provisions inserted.

NAFCU Director of Legislative Affairs Brad Thaler said that either a formal or informal "`conference" process was possible though. He added that Oxley has expressed interest in adding some items to the Senate bill, but did not know the specifics. The chairman's office did not disclose any details of what he might be seeking.

While banks and credit unions do not entirely agree on what should be in the bill, all agree that the Senate version is a welterweight compared to the heavyweight regulatory burdens financial institutions face. The banking trade groups indicated they, too, would like the chance to work in some other relief items.

American Bankers Association President and CEO Edward Yingling said his group "look[s] forward to working with members of the House and Senate as they reconcile their regulatory relief bills."

"We want to thank Chairman Richard Shelby (R-Ala.) and Sens. Paul Sarbanes (D-Md.) and Michael Crapo (R-Wyo.) for their leadership on the Senate side, and for the efforts of Chairman Michael Oxley (R-Ohio) and Reps. Barney Frank (D-Mass.) and Jeb Hensarling (R-Tex.) in previously passing a bill in the House," America's Community Bankers Executive Vice President and Managing Director of Government Relations Bob Davis said. "We now look for their continued leadership to work out the differences between the two bills to craft legislation that will provide true regulatory relief for the banking industry."

The Independent Community Bankers of America urged the addition of more provisions from the Communities First Act (S. 1526), a tax and regulatory relief bill geared toward community banks.

[email protected]