Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NEW: Senators Intro 'Too Big' Bank Bill
WASHINGTON (UPDATED: 4/24/13, 4:35 p.m. ET)--Sens. Sherrod Brown (D-Ohio) and David Vitter (R-La.) today introduced the Terminating Bailouts for Taxpayer Fairness Act (S. 798), which, in part, would impose stronger capital requirements on banks.

The bill would require the largest banks to maintain a capital ratio of at least 15%. Smaller banks would be subject to a lower threshold of between 8% and 9.5%.

Credit Union National Association Vice President of Legislative Affairs Ryan Donovan said that if lawmakers address community bank capital standards, that action should be paired with legislation to address credit union capital issues, particularly the ability of credit unions to accept supplemental forms of capital.

The Brown-Vitter bill, however, does contain some provisions that would apply to credit unions as well as banks.  For example, the privacy notification bill--which would eliminate repetitive privacy notices by eliminating a requirement that the notices be sent annually--has been included in this bill.   It also includes the part of the examination fairness bill, creating an examination ombudsman for all the federal financial institution regulators.

The Brown-Vitter bill would also provide some relief with respect to the definition of a qualified mortgage.  The legislation would also exempt financial institutions under $10 billion in assets from small business data collection requirements under the Equal Credit Opportunity Act.  

Proir to the bill's introduction, CUNA President/CEO Bill Cheney told The Hill newspaper in an interview that  "the people in the positions who made the decisions to bail out the big banks before would probably have to do the same thing today"  barring any changes to the law.  He added, "I think too big to fail still exists."

Cheney also told the publication that many rules out of regulatory agencies like the Consumer Financial Protection Bureau (CFPB) are unduly burdening credit unions instead of major banks and predatory lenders.

CUNA has presented a 35-point plan to Congress recommending regulatory relief measure for credit unions, which includes a proposal to permit credit unions accept supplemental forms of capital consistent with the cooperative principles.


RSS print
News Now LiveWire
.@CUNA is testifying on reg relief Tues,July 15 at 2 p.m. be4 Hs Fin Serv Subc. Here is the agenda and witness list: http://t.co/yBRhlmdqHt
49 minutes ago
IBEW Local 816 FCU closes.The Paducah, Ky., $6.3 million-asset #creditunion served 929.It's the 6th federally insured CU liquidation of 2014
1 hours ago
.@BankOnOregon recruiting #creditunions for underbanked project via @NWCUA http://t.co/j6MgHbe9F8
2 hours ago
.@wpcu's Fecher to testify next week on reg burden @HouseFinSrvicesCmte's subcommittee FIs/consumer credit #NewsNow http://t.co/eNGlQ7n3SS
2 hours ago
1 in 6 US teens considered financially illiterate, survey finds #NewsNow http://t.co/KpqYveLf4n
3 hours ago