Credit unions have the "moral high ground" to promote a regulatory structure that allows them to keep operating as is, but they should be prepared to operate in a vastly changed system, that could include one regulator for all financial services providers.
That's the conclusion of a report by the Filene Institute that analyzes the regulatory restructuring ideas being discussed by the Obama administration and Congress.
Given that there is a strong tide toward consolidated regulation, credit unions should be proactive in pushing what they want, advises Filene's Chief Research Officer George Hofheimer, the report's author.
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"While I don't expect credit unions to wither up and expect a new regulatory structure, it may be wise to prepare for a single regulator scenario," he wrote.
When making their case on why they should be preserved, credit unions should highlight their attributes that make them admired, "pragmatic underwriting standards, conservative capital positions, and sanely compensated executives," the report concluded.
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