Congressional Committees Plan to Address Credit Union Issues
Feb. 14, 2011 Recently, the House Financial Services and Senate Banking Committees released their oversight plans for areas of study and action for the 112th Congress. Both Committees included credit union issues in their oversight plans.
Both Committees are primarily focused on job creation issues, economic recovery, the implementation of the Dodd-Frank Act and government sponsored enterprise (GSE) reform. With respect to credit unions, the House Financial Services Committee's oversight plan stated that the Committee will review issues relating to the safety and soundness and regulatory treatment of the credit union industry, in particular it will look at the failures in the corporate credit union system and evaluate possible reforms.
The Senate Banking Committee also intends to look at credit union issues and the corporate stabilization as well as prompt corrective action (PCA) and net worth standards for credit unions, member business lending limits and insuring Interest on Lawyers' Trust Accounts (IOLTA) at credit unions. Late last Congress, a bill was passed that extended unlimited insurance to IOLTA accounts at banks, but didn't address the issue for credit unions.
NASCUS is meeting with House Financial Services Committee Chairman Spencer Bachus and Senate Banking Committee Chairman Tim Johnson on March 2 to discuss credit union oversight issues and the importance of capital reform and supplemental capital for credit unions.