Even though most credit unions would be exempt from beingexamined by the proposed Consumer Financial Protection Agency underan amendment passed by the House Financial Services Committeeyesterday, CUNA and NAFCU are holding out for more.

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"A basic premise of the credit union movement is to never bedivided against itself in any way," CUNA President/CEO Dan Micasaid in a statement. "A key principle of ours in approachingfinancial regulatory reform has been for examination authority toremain with credit unions' primary regulator. We cannot supportlegislation that would apply this principle only to a portion ofthe nation's credit unions, as envisioned in this amendment."

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Mica said CUNA would try to work out a compromise, but if onecannot be reached the trade group would oppose the bill.

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NAFCU Executive Vice President of Government Affairs Dan Bergersaid the amendment "is a step in the right direction, but it doesnot go far enough in giving credit unions much needed regulatoryrelief. While well-intentioned, the amendment would impose anarbitrary asset limit on credit unions, one that is considerablylower than the $10 billion limit proposed for banks and thrifts. Atthe very least, credit unions should be given parity with otherfinancial institutions."

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He added they will continue to push for a total exemption fromthe "costly and unnecessary regulatory burden" for credit unionsthat are subject to oversight by the NCUA.

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The amendment, sponsored by Reps. Brad Miller (D-N.C.) andDennis Moore (D-Kan.) and passed by a voice vote, exempts creditunions with less than $1.5 billion in assets and banks with lessthan $10 billion in assets from being examined by the CFPA. Thosefinancial institutions would be required to comply with regulationsthat the agency issues, but the examinations would be done by theirsafety and soundness regulator, though the CFPA could have someoneon the examination team.

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