CEO DATELINE - American Bankers Association sues credit union regulator
CEO DATELINE - American Bankers Association sues credit union regulator
- December 8, 2016 |
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Walt Williams
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The American Bankers Association is suing the National Credit Union Administration for adopting a new rule the organization says goes too far in expanding the fields of membership for credit unions.
According to the association, Congress has given explicit instructions that community credit unions should only serve a single, well-defined local community. However, the recently finalized NCUA rule states that large regions—including millions of residents and cutting across multiple states—are single "local" communities.
The rule also allows credit unions to selectively serve only parts of the local community and areas adjacent to the community, ABA said.
"NCUA's rule ignores statutory requirements at the expense of taxpayers, small banks and the communities those banks serve," ABA CEO Rob Nichols said. "ABA has successfully sued NCUA three times on past occasions in which the agency exceeded its congressional authority, and we look forward to challenging their latest violation of the law in federal court."
The lawsuit was filed Wednesday in U.S. District Court for D.C. http://bit.ly/2goJatZ
The credit union's two major associations were quick to release statements saying they would support NCUA in a legal battle against ABA.
"If the banks had put this much effort and money into policing themselves, maybe they could have helped avoid the financial crisis they caused that harmed consumers and our country's economy," said Dan Berger, CEO of the National Association of Federal Credit Unions. http://bit.ly/2hoTIHl
"This meritless attack from bankers on the NCUA's rule completely ignores both the law and the NCUA's authority to regulate credit unions," said Jim Nussle, CEO of Credit Union National Association. http://bit.ly/2hkdeZo
Wednesday was not the first time credit union and banking associations have clashed in recent months on a lawsuit directed at NCUA. The Independent Community Bankers of America sued the agency in September to block implementation of a new commercial lending rule.
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