CUNA urges President Bush to sign Reg Relief bill

October 4, 2006

FOR IMMEDIATE RELEASE
Contact:
Pat Keefe, CUNA
(202) 508-6765; pkeefe@cuna.com
pkeefe@cuna.com

CUNA has urged President George W. Bush to sign into law the recently passed Financial Services Regulatory Relief Act of 2006 (S.2856), noting the measure’s five key provisions for credit unions, and they role they will play in helping to deliver more efficient financial services to American consumers.

“These commonsense reforms are an important step in creating a more robust and competitive marketplace for all financial institutions and their members and customers,” CUNA President and CEO Dan Mica stated in his letter to President Bush. “I urge your support for this important piece of legislation and appreciate your leadership in this vital sector of our economy.”

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October 3, 2006

President George W. Bush
The White House
Washington, DC 20500

Dear Mr. President:

On behalf of the Credit Union National Association and America's 89 million credit union members, I appreciate your leadership and support of the credit union movement and urge you to sign into law S. 2856, the Financial Services Regulatory Relief Act of 2006.

This important legislation was cleared by the Senate on September 30, 2006, and provides much needed regulatory reform for all financial institutions, including credit unions, banks, and savings institutions. Modernization of the current financial regulatory structure is a key element in keeping our financial services sector competitive with our counterparts in the global marketplace. In addition, regulatory modernization provides the American consumer with more competition, leading to better service and lower fees.

The Financial Services Regulatory Relief Act of 2006 includes five provisions that are of specific interest to credit unions. The first provision allows government authorities responsible for Federal buildings the option of allowing credit unions to lease space at a minimal charge to serve that credit union's membership. The second section of the bill that benefits Federal credit unions increases the maturity limitation on credit union loans from 12 to 15 years. The third provision amends the Federal Credit Union Act, allowing credit unions to provide certain financial services to anyone eligible for membership in a particular credit union, regardless of their membership status. The fourth clarifies the definition of net worth under certain circumstances for purposes of prompt corrective action. The fifth and final provision clarifies the authority of the Federal Trade Commission to require certain public disclosures by privately-insured credit unions.

I believe that these commonsense reforms are an important step in creating a more robust and competitive marketplace for all financial institutions and their members and customers. Again, I urge your support for this important piece of legislation and appreciate your leadership in this vital sector of our economy.

Sincerely,

Daniel A. Mica
President and Chief Executive Officer
Credit Union National Association
Washington, DC

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