WASHINGTON (10/24/14)--Credit unions and small banks could work together to accomplish a reduction in regulatory burden, says Credit Union National Association President/CEO Jim Nussle. In an op-ed published in American Banker, Nussle said such burdens make "strange bedfellows."
Nussle praised an American Banker article written last week by Sen. Mike Crapo (R-Idaho), who said bold regulatory reforms would help credit unions and other small financial institutions. Nussle said Crapo "hit the ball out of the park," and addressed further impacts of regulatory burden.
"Too often, regulators force credit unions and other smaller financial institutions to comply with rules written to address the misdeeds of Wall Street firms and the largest depository institutions in the country," Nussle wrote. "Credit unions did not engage in the practices that contributed to the financial crisis. But the post-crisis reaction of lawmakers and regulators has been to target everyone, thereby missing the point about what caused this disaster."
With gridlock in Congress giving little hope to regulatory reform measures being passed, regulators might feel they have "carte blanche" when it comes to regulation, Nussle wrote. This makes it important for credit unions to seek alliances with other organizations who also strive for regulatory relief.
"I believe credit unions can work with small banks to create momentum and put pressure on both legislators and regulators to reduce unnecessary and cumbersome regulations," Nussle wrote. "This could be a surprise for us to deliver to Congress. We can create a shared agenda and build momentum in a bipartisan way to help reduce the regulatory burden that small banks and credit unions face."