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Voluntary liquidations, share insurance report on NCUA Feb. agenda

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ALEXANDRIA, Va. (2/14/14)--There are only two items on the National Credit Union Administration's agenda for its Feb. 20 meeting. Top among the two would be the agency's quarterly report on the status of the National Credit Union Share Insurance Fund. The other is a proposed rule on voluntary liquidations of federal credit unions.

Part 710 of NCUA regulations, Voluntary Liquidations, was on the list of rules the agency reviewed in 2012. Each year, the NCUA reviews one-third of its regulations to identify any rule or provision that it deems "outmoded, ineffective, insufficient, or excessively burdensome."

The meeting is scheduled to begin at 10 a.m. (ET). Watch News Now for coverage.

For the full agenda, use the resource link.

NEW: CUNA urges regulatory hearing on risk-based capital plan

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WASHINGTON (2/14/14, UPDATED 2:28 p.m. ET)--Public hearings on the National Credit Union Administration's risk-based capital proposal have been called for by the Credit Union National Association, as the association urged the regulator to address credit unions' "deep-seated concerns" in an interactive setting.   

In a letter today to NCUA board members, CUNA President/CEO Bill Cheney wrote that hearings would produce an official record of discussions between credit unions and NCUA leadership that, in addition to comment letters, the NCUA board could rely upon to determine the best path for proceeding on the rule.

​The CUNA leader noted to the federal regulators that CUNA is "dissecting the agency's stated legal basis for the proposal," and reviewing a January 2012 Government Accountability Office report on the NCUA's use of Prompt Corrective Action.  

In addition, Cheney wrote that CUNA is thoroughly assessing the impact and costs of the proposed risk-based capital rule to the credit union system. CUNA is comparing the NCUA plan to key provisions of Basel III, the global, regulatory standard that will be implemented for banks through March 31, 2018 on capital adequacy, stress testing and market liquidity risks. 

"We are objectively considering the extent to which a number of key changes to the proposal would result in an improved outcome for credit unions and minimize any detrimental impact that the proposal would otherwise impose," Cheney said. 

CUNA continues to urge credit unions to find out as much as possible about the proposal and to send a comment to NCUA  within the 90-day comment period provided. (The due date for comments will be set once the proposal is printed in the Federal Register,  which has not occurred as of this writing. Watch CUNA'sNews Now  for updates.)   

CUNA estimates that the risk-based capital proposal carries with it a multi-billion dollar price tag for credit unions--perhaps prompting as much as $7.3 billion in more capital to retain current margins. 

What is most concerning about the impact, Cheney points out, is that it would occur despite the fact the current system showed its strength by withstanding the worst financial crisis in 80 years.  

NEW: CU advocates to flood D.C. as Camp readies tax reform report

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WASHINGTON (2/14/14, UPDATED 3:15 p.m. ET)--House Ways and Means Committee Chairman Dave Camp (R-Mich.) plans to release his much-anticipated and much-delayed plan to overhaul the tax code soon, according to news media reports that are circulating.
 
"The timing of  4,300 credit union advocates hitting Washington, D.C. for our Governmental Affairs Conference starting Feb. 23 could not be any better," says Credit Union National Association Executive Vice President John Magill.
 
CUNA, the state credit union associations, credit unions and credit union members have vehemently been advocating on behalf of the credit union tax status in anticipation of the tax code reform draft.
 
"Credit unions and their members will be well served by having thousands of their advocates available for Capitol Hill visits during GAC to drive home their "Don't Tax My Credit Union" message just as been the tax report is being wrapped up," Magill notes. "Credit unions have worked hard to make sure that lawmakers on all levels truly understand that a new tax on credit unions would be a tax on the 99 million Americans that are their members."​

Calif. congressman Gary Miller will not seek re-election

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WASHINGTON (2/14/14)--House Financial Services Committee Vice Chairman Gary Miller (R-Calif.) has announced he will not seek re-election this year.

Miller is a 15-year House veteran who currently represents the state's 31st Congressional District. That district is located in the greater Los Angeles area.

A frequent credit union supporter, Miller last summer introduced the Regulatory Relief for Credit Unions Act of 2013 (H.R. 2572). That bill would enhance some National Credit Union Administration authorities, improve capital standards for credit unions, and require regulators to perform a cost-benefit analysis of rules, past and present.

When the bill was introduced, the Credit Union National Association and credit unions thanked Miller for acting on their great need for regulatory relief so fewer resources are diverted from their true business of serving their members. Miller included CUNA in the development of his legislation.​

Miller also supported 2011 legislation that would have delayed Dodd-Frank interchange provisions and required regulators to study the impact of interchange rule changes.

CUNA social media prowess recognized in American Banker

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WASHINGTON (2/14/14)--American Banker Thursday highlighted the Credit Union National Association's recent Grassroots Innovation Award win for online efforts that "successfully harnessed the forces of social media behind its anti-tax message."

Using the J.P. Morgan social media fiasco as a counterpoint to CUNA's success,  the article noted the credit union campaign "spurred roughly 13,200 messages (including 7,000 sent directly to lawmakers) posted to Twitter with the #Don'tTaxMyCU hashtag over those two days."

While J.P. Morgan's attempts to reach out to the public through social media were hijacked by angry customers, CUNA's " Don't' Tax" efforts succeeded because grassroots credit union supporters genuinely believe in their credit unions, CUNA Vice President of Political Affairs Trey Hawkins told the Banker.

Overall, since the "Don't Tax My Credit Union" campaign began in May 2013, it has garnered more than 1.3 million direct messages to the U.S. Congress.

For the full Banker article and more on CUNA's Don't Tax My Credit Union efforts, use the resource link.

The Grassroots Innovation Awards are given out annually at the Public Affairs Council's National Grassroots Conference in Florida. The awards recognize the nation's best grassroots programs and campaigns in the categories of Corporate Innovation, Association Innovation and Social Media Innovation.

"We owe much of our success to the dedication of credit union members, who willingly engage in advocating for their credit unions," Richard Gose, CUNA senior vice president of political affairs,  acknowledged in the article.

CUs' community work is star of new NCUA video

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ALEXANDRIA, Va. (2/14/14)--The positive community work of a trio of credit unions is featured in a new National Credit Union Administration video.

The agency's "Small Credit Unions + Service = Success" video profiles how Desert Communities FCU, Needles, Calif., Community Promise FCU, Kalamazoo, Mich., and Northern Eagle FCU, Tower, Minn., identified their respective communities' financial needs and stepped up to help.

"Small credit unions are so important to their members and their communities," and these credit unions exemplify the credit union mission, NCUA Chairman Debbie Matz said.