WASHINGTON (3/22/12)--Give regulation resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act an opportunity to increase safety and soundness within the financial system, Rep. Carolyn Maloney (D-N.Y.) urged credit unions to during a speech at the 2012 Credit Union National Association Governmental Affairs Conference.
"I think most people in the industry feared Dodd-Frank," Maloney said Wednesday. "I think that we have to give it a chance. I think it is going to function in a way that will make our markets function in a better way." She added that, when the country's markets are healthy, credit unions can be very healthy.
Maloney emphasized that the Dodd-Frank Act was not intended to create an increased regulatory burden for credit unions.
"Dodd-Frank was not passed because of anything credit unions did," Maloney said of the landmark financial reform package spurred by the country's recent economic meltdown. "If anything they were the stars during this crisis. It was the nonbanks, the over-the-counter derivatives that needed the attention."
Maloney did say there has been inconsistent application of examination standards by regulators since the financial crisis.
Maloney is a co-sponsor--along with Rep. Shelley Moore Capito (R-W.Va.), who addressed the GAC on Tuesday, and 122 other House colleagues--of the Financial Institutions Examination Fairness and Reform Act. The bill would give financial institutions the right to appeal regulatory exams to an independent ombudsman.
"I know the flexibility that regulators have wanted to build into their process has turned into real inconsistency," Maloney said. "And I have been hearing that financial institutions, including credit unions, have been reluctant to raise those concerns because of the powers that the regulators hold."
GAC sessions wrapped up Wednesday, but the GAC effort continues today with additional visits by credit union representatives with their federal lawmakers on key credit union issues.