Continuing the banking industry’s press against overreach by the National Credit Union Administration, the 53 state bankers associations today wrote to Congress urging them to further investigate NCUA and its efforts to subvert congressional intent.
“We are deeply troubled by the actions and recent comments from NCUA’s chairman that, in the name of ‘regulatory relief,’” the agency is prepared to essentially provide the credit union lobby’s legislative agenda through regulation despite Congress’ repeated unwillingness to do so directly,” the associations said in a letter challenging NCUA’s plans to expand CU business lending, weaken membership rules and ease capital constraints.
“These proposed changes would exponentially expand that tax subsidy while creating significant safety and soundness concerns, and should call into question whether the 81 year-old tax exemption is appropriate in the modern era,” the groups concluded.
