Treasury's O'Neill Suggests to Mica, Others, 'New Thinking' in Regulation

December 14, 2001

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

WASHINGTON - Treasury Secretary Paul O'Neill Thursday told CUNA President and CEO Dan Mica, and other leaders of financial institution groups, that many of the regulatory schemes for the nation's financial institutions are strongly rooted in the past, and need to be brought up to the present.

"We've got to have some new thinking," Mica said Treasury Secretary Paul O'Neill told the group. "We have to have a new dimension" in how we think about financial institution regulation, O'Neill said, adding, "I think there are some great opportunities for doing things differently than ever before."

Mica said O'Neill's comments bode well for CUNA's Renaissance process. "Clearly the administration is taking a close look at financial institution regulation, which mirrors our own self-examination under Renaissance. I look forward to working with Treasury as its examination proceeds, and we can begin discussing 'new dimensions' of how credit union regulation is addressed."

Mica met with O'Neill and the other leaders of financial groups (including America's Community Bankers and the Independent Community Bankers of America) for about one hour Thursday.

The CUNA leader said many of O'Neill's comments centered on the administration's efforts to combat terrorism and to pass an economic stimulus package in the Congress. Regarding the economy, Mica said O'Neill told the group that "our feeling is, we're past the worst" of the economic slowdown.

"Secretary O'Neill urged all of us to be creative in our thinking of offering financial services, and fortunately, through Renaissance, we're on our way to doing so." Mica said. "It was an excellent meeting overall, with an opportunity for all of us to exchange and try out some new ideas at the highest level. I hope we will have more opportunities in the future for such exchanges."

With its network of affiliated state credit union leagues, Credit Union National Association serves more than 90% of America's 10,000 credit unions, which are owned by more than 81 million consumer members. Credit unions are not-for-profit cooperatives where people are worth more than money. For more information, visit www.cuna.org.

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