CUNA, NAFCU Ask for Netting Amendments

WASHINGTON-Letters from CUNA and NAFCU to House Financial Services Committee leaders showed the two credit union lobby groups were on the same page on the issue of qualified financial contracts. CUNA and NAFCU both expressed their support for adding the so-called netting provisions in S. 2141, which would amend the Federal Deposit Insurance Act, the Federal Credit Union Act, and the bankruptcy code to simplify the solution of contracts when one party become insolvent. "The netting provisions provide for the orderly unwinding of certain financial contracts when one party to the transaction becomes insolvent," CUNA President and CEO Dan Mica wrote. "The credit union movement would be placed at a significant disadvantage if netting provisions are fully extended to banks and securities firms, and not to credit unions."