Financial Services Industry Weighing In On Treasury’s ‘Blueprint’

NEW YORK–The entire financial services industry is still getting its arms around a U.S. Treasury proposal that would essentially merge the financial regulatory agencies and create a mortgage regulator.

The credit union community has been united in panning the plan. “Merging NCUA with other financial regulators is unwarranted and potentially harmful to the entire credit union system,” said Cliff Rosenthal, executive director of the National Federation for Community Development Credit Unions. “While there have been isolated problems with credit unions over the last year or two, they have very little to do with the current economic downturn and subprime mortgage crisis. Overwhelmingly, credit unions maintain a conservative, consumer-friendly book of business. They are a vital part of redressing the economic wounds inflicted by largely unregulated, profit-maximizing financial institutions.”

The New York State Credit Union League promised that credit unions of every stripe would oppose the move, noting the damage to the dual chartering system the movement has long heralded as key to its success. “By proposing the elimination of the federal credit union charter and the National Credit Union Administration and by severely restricting the continued viability of state-chartered credit unions, the report represents a radical, imprudent and ultimately counterproductive attempt to eliminate the credit union industry,” NYSCUL CEO Bill Mellin said. “Both federal and state credit unions across the state will oppose these proposals.”

Other sectors of the financial services industry, however, have offered slightly mixed reviews. To read more about that, click on the related link at right to take you to an entire site dedicated to this issue.