The regulatory responsibilities of the NCUA should be handled bya newly created division of the Treasury Department and thereshould be separate entities to administer the NCUSIF and theCLF.

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Those are the key components of a reform agenda outlined byCallahan & Associates, the Washington-based credit unionconsulting firm.

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Doing credit union regulation out of the Treasury Departmentwill “address a fundamental flaw in the cooperative structure,’’the report said.

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Before the NCUA was established as an independent agency, itsfunctions were carried out as part of the broader responsibilitiesof other departments. The industry pushed for an independentagency, arguing that it could better understand the uniquequalities of credit unions.

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And while some restructuring proposals called for theelimination of the NCUA as an independent agency, the financialoverhaul bill passed by Congress last year made no changes to theagency’s authority.

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The reform agenda is outlined in the April issue of the Callahan Report.

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“America has never needed credit unions more. However, systemicreform is necessary to fulfill the mission set forth by Congressand to satisfy the growing needs of members,’’ the report said.

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