Calif., Nev. reps: RBC2 undercuts Congressional intent
WASHINGTON (9/23/15)--U.S. Rep. Juan Vargas (D-Calif.) and 11 of his colleagues from California and Nevada have written to the National Credit Union Administration, questioning the agency’s revised risk-based capital proposal (RBC2).
In their letter, the legislators express appreciation to the agency for the revisions, but are still concerned about “potential unintended consequences” of the proposal, particularly the capital standards.
“In the most recent revision to the Federal Credit Union Act, Congress specifically defined adequate capital ratios,” the letter reads. “The revised rule requires credit unions to be capitalized at levels above what has been statutorily mandated, which undercuts congressional intent.
The legislators added that they hope to see this addressed in the final rule, to avoid an “inherent conflict” for credit unions.
“Credit unions have returned to healthy capital levels across our nation,” the letter reads. “The cost and complexity of issuing this new rule may disrupt the gains made over the past few years, which would have an immediate impact on the nation’s 102 million credit union account holders.”
Reps. Pete Aguilar (D-Calif.), Mark Amodei (R-Nev.), Ami Bera (D-Calif.), Julia Brownley (D-Calif.), John Garamendi (D-Calif.), Joe Heck (R-Nev.), Doug LaMalfa (R-Calif.), Lucille Roybal-Allard (D-Calif.), Brad Sherman (D-Calif.), Eric Swallwell (D-Calif.) and Norma Torres (D-Calif.) joined Vargas in signing the letter.
CUNA has expressed similar concerns about the proposal's effects, and wrote Tuesday to members of the House Financial Services Committee to request an RBC2 "stop and study" bill be included in a markup scheduled for next week.
See "CUNA asks HFSC to take up RBC 'stop and study' bill" in today's News Now for more information.