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March 31, 2008 - On March 31, U.S. Treasury Secretary Henry Paulson released a proposal to reform the U.S. regulatory structure. The proposal calls for sweeping changes to the current regulatory system and could have broad ramifications to the nation’s supervisory structure affecting state regulatory agencies, state-chartered credit unions and the National Credit Union Administration (NCUA).
NASCUS President and CEO Mary Martha Fortney expressed serious concerns about the proposal’s far-reaching implications, including preemption of state authority and state regulation of state-chartered institutions. In its November 2007 comment letter to the U.S. Treasury on regulatory reform, NASCUS stated its steadfast belief that the current system provides important regulatory competition, innovation and diversity.
“NASCUS will thoroughly review the proposal and continue working with Treasury and others to ensure that state authority is maintained over state-chartered institutions. It is the role of state governments to determine proper regulation of its state-chartered institutions including credit unions,” said Fortney. “The dual chartering system is threatened by the preemption of state laws and the push for uniformity.”
"Credit union dual chartering has benefited the nation and the states for nearly 100 years. The dual chartering concept is based on the important foundation of competition and choice between state and federal charters. Disruption of the current structure would have various negative impacts. It would diminish state and federal regulator cooperation, tip the balance of power between states and the federal government and minimize the economic benefit and enhanced consumer protections available to states through state-chartered institutions.”
To read more about the proposal, click here.
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