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

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