WASHINGTON – The Bush administration is expected to unveil a plan today to deal with the ongoing crisis in the financial markets by consolidating banking regulators–NCUA with the banking agencies–and creating a new agency to oversee mortgage lending by all financial institutions.
The proposal, to be introduced in a speech by Treasury Secretary Henry Paulson, would give new powers to the Federal Reserve to limit risk in the financial markets and to lend to non-bank institutions; and would abolish certain agencies, like the Commodity Futures Trading Commission, by merging it into the Securities and Exchange Commission, and the Office of Thrift Supervision.
It would also combine NCUA with the FDIC, the Comptroller of the Currency under the Treasury Department.
The plan would also create a new agency, called the Mortgage Origination Commission, which would have supervision authority over all mortgage loans. The agency would be overseen by a board comprised o principals from the Fed, OCC, FDIC, NCUA and the Conference of State Bank Supervisors.
NCUA staff is scheduled to meet today to discuss the proposal and how it may impact credit unions.