Supplemental Capital Bill Hinges on Elusive Bank-CU Collaboration: Onsite Coverage
Credit unions and banks work together in their communities, and if they could elevate that spirit of collaboration to the federal level, it could result in capital reforms for both types of financial institutions, said Linda Armyn, senior vice president of corporate strategy for the $5.3 billion Bethpage FCU.

Armyn made the remark while moderating a legislative briefing Thursday on Capitol Hill in support of H.R. 719, the Expanding Consumer Access to Affordable Financial Services Act, which would give credit unions access to supplemental capital. The bill currently has 38 co-sponsors: 28 are Democrats, and 10 are Republicans.  Read More
 
Matz Says She’s On Board with King’s Supplemental Capital Bill
NCUA Chairman Debbie Matz expressed her support for H.R. 719, the Capital Access for Small Business and Jobs Act, in a May 2 letter to the bill’s sponsor, Rep. Peter King (R-N.Y.).

The bill would allow credit unions to utilize uninsured, non-share accounts to supplement capital.

“Your legislation would provide credit unions with an additional tool to promote sufficient capital stability – even under adverse economic conditions – and ensure that healthy credit unions would no longer be forced to turn away deposits in order to protect their net worth ratio,” Matz wrote in the letter.  Read More
 
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Banks’ attacks against a supplemental capital bill for credit unions are spurious, will go nowhere, and run counter to a growing interest among members of Congress in capital reform not only for credit unions, but for financial institutions generally, said the Credit Union National Association.  Read More


 
Legislation introduced in the U.S. House of Representatives last week to improve access to capital for consumers by reforming an outdated limitation on the ability of credit unions to attract supplemental capital is likely to receive a boost from lawmakers looking for ways to remove regulatory roadblocks and small businesses and consumers hoping to find capital in a still-struggling economy.  Read More
 
Reps. King, Sherman Introduce Supplemental Capital Bill
Legislation would improve CUs’ safety and soundness.

Rep. Pete King (R-N.Y.) and Brad Sherman (D-Calif.) today reintroduced legislation that would permit NCUA to allow credit unions to accept additional forms of capital, News Now reports.  CUNA President/CEO Bill Cheney thanked King and Sherman for introducing the bill.

“Your legislation would provide credit unions with the appropriate ability to raise capital from sources other than retained earnings without putting in jeopardy the ‘one member, one vote’ principle that is the bedrock of the credit union ownership structure,” he wrote in a letter to the legislators. “As credit unions emerge from the financial crisis, this legislation would improve the safety and soundness of credit unions by allowing them to develop a supplemental cushion to reduce risk to the National Credit Union Share Insurance Fund.”  Read More