WASHINGTON (7/30/15)--Increasing bank fines for consumer abuses show that the need for credit unions is indisputable, CUNA President/CEO Jim Nussle wrote in The Hill Wednesday.
Given that in fiscal year 2014 bankers paid $24.7 billion in financial fraud fines, Nussle suggests that Congress and the National Credit Union Administration should be looking for more ways to remove barriers that keep Americans from joining credit unions.
“Citibank was fined $700 million last week--$700 million--a fine greater than the size of nearly 6,000 credit unions!” Nussle wrote. “With banks being fined this much for abusing consumers, the need for credit unions in the marketplace is indisputable.”
In response to the latest misinformed bank attack on the not-for-profit cooperative financial system, Nussle also pointed out how the NCUA is a prudential regulator, not a “cheerleader.”
“The truth of the matter for credit unions is that the agency has been on a binge of regulation over the past several years, culminating in a new risk-based capital regime that is a solution in search of a problem,” Nussle said. “And credit unions continue to fault the agency on inconsistent examinations and questionable examiner practices.”
Nussle also highlighted how, with the evolution of the financial system, credit unions should not be boxed in from serving Americans. Charter enhancement is needed by credit unions to keep up with this evolution.