Dodd-Frank 4th anniversary today
July 21, 2014 – Today marks the fourth anniversary of the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created CFPB and began the roll-out of regulations over a period that has seen more than 800 credit unions close.
"Dodd-Frank was a response to the bad actors and Wall Street titans who caused the financial crisis, but credit unions are suffering from overregulation as a result," said NAFCU President and CEO Dan Berger. "Compliance costs have taken a serious toll on Main Street credit unions that do not have the resources that big banks do – and the regulations keep coming."
NAFCU was the only financial trade association to oppose putting credit unions of any size under the authority of CFPB when the bureau was proposed. Repeated NAFCU members surveys have reflected the number of credit unions which are having to forgo offering new services and increase fees as a direct result of regulation. Ninety-two percent of member credit unions surveyed have seen their regulatory burden increase in the past four years.
"It's time to say ‘enough is enough' and end the rampant overregulation of our industry, which Congress and regulators agree was not responsible for the crisis in any way," Berger said.
NAFCU is working to help mitigate the growth of regulatory burden. It is working from its "Dirty Dozen" list of rules to win improvements to some rules and eliminate others. Last week, Dover Federal Credit Union President and CEO David Clendaniel testified on the need for regulatory relief on behalf on NAFCU before a House Financial Services subcommittee. Several elements of the association's five-point plan for credit union regulatory relief have already been reflected in legislation, including:
- H.R. 2572, the "Regulatory Relief for Credit Unions Act";
- H.R 3468, which would amend the Federal Credit Union Act to require pass-through share insurance coverage be provided for Interest on Lawyers Trust Accounts;
- H.R. 688, the "Credit Union Small Business Jobs Creation Act," which addresses member business lending; and,
- H.R. 719, the "Capital Access for Small Businesses and Jobs Act," which addresses supplemental capital.
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