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CUNA to Obama CU regulators should heed reg review
WASHINGTON (1/21/11)--The Credit Union National Association (CUNA) expressed its strongest support for a proposed review of financial and other regulations in a Thursday letter to President Barack Obama. CUNA urged the National Credit Union Administration (NCUA) and other independent agencies to consider the "principles and basic approach to regulation" reflected in that executive order when reviewing current regulations. The Obama administration in a Tuesday executive order called on federal agencies to design cost-effective, evidence-based regulations that are compatible with economic growth, job creation, and competitiveness. Specifically, the administration instructed regulators to consider approaches that maintain freedom of choice and flexibility, including disclosure of relevant information to the public, and to work to coordinate, simplify, and harmonize regulations where possible to reduce costs and promote certainty for businesses and the public. The order also instructed regulators to reduce burdens on small businesses whenever possible and called for greater transparency and accountability in regulatory compliance. The resulting regulations must also be subject to periodic review, the order said. Regulatory reform is critical for financial institutions, particularly in light of many new requirements under the Dodd-Frank Act and continual regulations from federal financial authorities, the CUNA letter adds. “At the very time when a number of credit unions are operating with reduced resources due to the economic crisis that they did not create, they are being subjected to an ever-increasing regulatory load,” CUNA President/CEO Bill Cheney wrote. “Because credit unions are financial cooperatives, their members are also burdened, since the costs of meeting regulatory demands are ultimately borne by a credit union's membership.” Cheney urged a review of the collective impact of regulation on credit unions and others which must operate under rules, directives, guidelines, and orders issued by a number of agencies, and suggested that the Consumer Financial Protection Bureau, which is currently under development, would be ideal for this role. CUNA added that working with members of Congress to reduce regulatory burdens in a meaningful way, without jeopardizing key consumer protections or important safeguards, will benefit both the economy and the nation.


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