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November 25, 2015

Shelby says next 2 weeks key in reg relief

Senate Banking Committee Chairman Richard Shelby, R-Ala., said last week that measures providing regulatory relief to smaller financial institutions – including NAFCU-backed provisions for credit unions – could move forward in Congress before year-end.

"We are treating all the banks the same and putting them all in the same straight jacket," said Shelby, in a speech at the Birmingham Kiwanis Club last week reported by the Birmingham Business Journal. "I want to try to give relief to the small and midsized banks because they didn't cause the problem, but they're paying the same price." He said the next couple of weeks will be key in negotiations with Democrats in an effort to get a package that is "substantive" and "politically doable."

In May, the committee reported out Shelby-authored S. 1484, the "Financial Regulatory Improvement Act," which contains many NAFCU-backed provisions, including a requirement for public NCUA budget hearings, statutory relief from annual privacy notice requirements and the granting of safe harbor qualified-mortgage status for certain loans held in portfolio.

The language of S. 1484 was included in the Senate Appropriations Committee's spending bill for FY 2016.

NAFCU President and CEO Dan Berger met with Shelby earlier this month to discuss regulatory relief and other top issues for credit unions. NAFCU and other financial industry trades wrote Senate leaders urging action on the bill in September.