ROCKLIN, Calif. — The backlash following the release of thecontroversial regulatory agency overhaul proposal from the TreasuryDepartment last week came on several fronts within the credit unionindustry.

Trade groups blasted the 218-page “Blueprint for a ModernizedFinancial Regulatory Structure,” which among other short- andlong-term goals, would establish a new federally insured depositoryinstitution charter that would consolidate national banks, federalsavings associations and federal credit union charters. Criticshave said that move alone could conceivably eradicate the creditunion nonprofit model.

Just as troublesome and murky, critics contend, is the impact aconsolidation of regulatory agencies would have on credit unioninvestment and insurance programs as well as their relationshipswith CUSOs.