The NCUA would "maintain its authorities with regard to credit unions," according to a draft of the Obama administration's regulatory restructuring plan that is scheduled to be released later today.
It's not clear from the proposal, however, how much of the agency's power to regulate consumer products would be usurped by the new Consumer Financial Protection Agency that the administration is proposing. Currently, many consumer regulations are issued jointly by the Federal Reserve, the NCUA, the FDIC, the Office if the Comptroller of the Currency and the Office of Thrift Supervision.
If approved by Congress, the new consumer protection agency would regulate products such as credit cards and mortgages. It would enforce measures that credit unions deal with regularly such as the Truth in Lending Act and the Real Estate Settlement and Procedures Act.
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The plan also would create a Financial Services Oversight Council, which would oversee some of the regulation of systemic risk. It would "help fill gaps in supervision, facilitate coordination of policy and resolution of disputes, and identify emerging risks in firms and market activities." It would be chaired by the secretary of the Treasury and made up of the heads of the "principal financial regulators;" the NCUA chair is not listed as one of those regulators on the committee.
Although the NCUA's oversight of credit unions would remain intact, there would be changes in bank regulation, including eliminating the federal thrift charter and creation of a National Bank Supervisor to regulate all federally chartered banks and federal branches and agencies of foreign banks.
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