Removing Barriers Blog

Nussle Responds to Latest Bank Attack in Hill Op-Ed
Posted July 31, 2015 by Chandler Schuette

This week, CUNA President and CEO Jim Nussle penned an Op-Ed in The Hill newspaperresponding to wild accusations recently made by American Bankers Association president Frank Keating. Last Thursday, July 23rd, Keating also wrote an Op-Ed in The Hill’s “Congress Blog”, where he claimed that credit unions “enjoy a compliant federal regulator that often acts like a cheerleader for the industry it is supposed to be supervising.” His main complaint was that NCUA’s recent proposed member business lending (MBL) rule made it easier for credit unions to grow their business lending portfolios, and expressed that “This growth should be a source of concern for all members of Congress.”  

In his response, Nussle described Keating’s article as a “rant” that was “hard not to chuckle” at. Nussle pointed out that far from being a “cheerleader”, the NCUA has been “on a binge of regulation over the past few years culminating in a new risk-based capital regime that is a solution in search of a problem….the differences between credit unions and banks are as strong as they have ever been.” Nussle further pointed out that the need for credit unions in the marketplace is as strong as ever, evidenced by the enormous fines banks are receiving for abusing consumers. CUNA's Advocacy Team also emailed the Op-Ed to all House and Senate chiefs of staff, legislative directors, and financial services staff.

So despite what the bankers may drum up in their heads, NCUA is not a cheerleader regulator. Credit unions don’t have, or even need a regulator to cheer for them. We leave the cheerleading to our members, who in poll after poll re-iterate their high satisfaction with the credit union difference.