U.S. Capitol (Photo: Diego M. Radzinschi/ALM)
On the eve of the Senate Banking, Housing, and Urban Affairs Committee’s hearing on “Evaluating Perspectives on Deposit Insurance Reform,” the Defense Credit Union Council (DCUC) urged lawmakers to ensure small business deposits are fully protected and that credit unions receive the same insurance coverage and emergency authorities as banks.
In a letter to Committee Chair Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), DCUC commended the decision to include Hanscom Federal Credit Union President/CEO Peter Rice as a witness, representing the nation’s 144 million credit union members.
“[DCUC’s] mission is to advocate for the interests of credit unions that serve America’s service members and their families, and the issues before the Committee profoundly affect not only those institutions, but all credit unions and the communities they support,” Jason Stverak, DCUC’s chief advocacy officer, wrote.
DCUC President/CEO Anthony Hernandez hailed Rice’s testimony as a milestone. “First, it highlights the impact of our members and the credit union mission. We knew banks would be testifying, so we made sure credit unions were represented, too,” Hernandez said. “Second, this underscores the willingness of congressional leaders to hear directly from local financial institutions that are helping small businesses and communities thrive.”
In his prepared remarks, Rice warned that the perception of “too-big-to-fail” banks undermines community institutions and jeopardizes payrolls and national security. “When their payroll is at risk, America’s stability is at risk,” he told the committee, citing the fallout from the 2023 Silicon Valley Bank collapse that froze thousands of small-business paychecks.
Rice called for targeted reforms, including higher insurance coverage for payroll and operating accounts, risk-based pricing for banks with high uninsured deposits, and protections for defense supply chain vendors.
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