Removing Barriers Blog

CUNA Sends Letter to House Financial Services Committee Urging Consideration of RBC Study Act
Posted September 23, 2015 by CUNA Advocacy

Earlier this week, CUNA sent a letter to House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Ranking Member Maxine Waters (D-CA), asking the Committee to consider H.R. 2769, the Risk-Based Capital Study Act. 

CUNA has supported this bill since its introduction, even though we had some concerns regarding the timing of its introduction. As Thomas Jefferson said, “a good cause is often injured more by ill-timed efforts of its friends than by the arguments of its enemies. When this bill was introduced earlier this summer, we had concerns that our efforts might be more effective if the bill was introduced after NCUA issued its final rule.  But we gave our support to the sponsors of the bill who recognized, as we did, that NCUA’s risk-based capital proposal is a solution in search of a problem.

We ended up asking the Committee to mark-up the bill, because we saw an opportunity to get it on the calendar during one of the last Committee meetings before the NCUA Board could finalize the rule.  We feel the timing is appropriate, because as we get closer to NCUA finalization, it is becoming clearer that the type of changes we had hoped to see, particularly changes addressing the capital adequacy provision, are unlikely to be made in the absence of additional pressure from Congress.

As we said in the letter, we believe Committee consideration of the legislation will send an important message to NCUA that, like us, many in Congress remain concerned with the proposal.  We look forward to the Committee considering the bill next week and appreciate their quick action on our request.