Saying that there needs to be stronger regulation to avoid a recurrence of problems that "led us to near catastrophe," President Obama today announced his regulatory overhaul plan.
Obama did not mention credit unions in his remarks though the official documents released said that the NCUA's responsibilities for overseeing credit unions would remain the same. He also said that cornerstone of the plan, the creation of a new Consumer Financial Protection Agency, will work to ensure that documents explaining financial products are simple, transparent and accurate.
NCUA Chairman Michael E. Fryzel, who was at the White House to attend to Obama's speech, said in a statement that he was "pleased with two specific elements: the creation of a council that would enhance consumer protections, and the maintenance of a separate and independent NCUA. Both of these, in concert with other aspects of reform under consideration, will serve to ultimately improve the safe and sound operations of the U.S. financial system."
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NAFCU President/CEO Fred Becker said in an interview that he had concerns about the new agency because "credit unions are already the most heavily regulated financial services provider and are concerned about having another bureaucratic layer to deal with." He said NAFCU was pleased that NCUA would remain a separate agency under the plan.
CUNA President/CEO Dan Mica said that his organization is "very grateful" that NCUA would stay as an independent agency under the regulatory overhaul. He said in a statement that at the "highest levels, this plan holds what credit unions are all about: transparency, accountability and service."
Mica added that his association wants to carefully examine the proposal for a new Consumer Financial Protection Agency because "it would be armed with a very broad mandate."
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