WASHINGTON—The credit union trade groups may be hailing the passage out of committee of the Financial CHOICE Act, but analysts are saying the legislation won’t be going any further.
The House Financial Services Committee passed HR 5982, the Financial CHOICE Act, and it now goes on to the full House for consideration. It has no Senate companion legislation.
The Financial CHOICE Act, drafted by committee Chairman Jeb Hensarling (R-TX), includes a repeal of the Durbin amendment and would also provide relief for well-capitalized institutions from certain regulatory restrictions imposed by functional regulators.
The CHOICE Act also includes language to expand the NCUA board from three to five members, subject the NCUA budget to congressional appropriations approval, establish a Credit Union Advisory Council at NCUA, require annual budget hearings for NCUA, provide greater transparency on the overhead transfer rate, and require 18-month examination cycles for well-run credit unions with under $1 billion in assets.
“Immediately after the Committee vote, I heard two reactions from Congressional staff that probably sum up the way Capitol Hill deals with most issues these days: a Republican said, ‘This is a good day, another important step forward to reform,’ and a Democrat said, ‘What a colossal waste of time on a bad idea,’” said John McKechnie, senior partner with Total Spectrum in Washington. “It’s hard to see common ground coming out of that kind of dynamic. And that’s a shame for credit unions, because there is plenty in the Hensarling bill that would benefit consumers and should receive serious consideration.”
Geoff Bacino, the former NCUA board member who now heads up his own firm in Washington, also said the bill is essentially finished.
“It has about the same chance that the Minnesota Twins have of making the playoffs,” said Bacino. “As they are currently 25 games out with 18 games to play, you can do the math. Even if this wasn't an election year with a shortened legislative calendar, the bill would have been vetoed by the president.”
CUNA noted earlier this week it’s not even known how much longer the current congressional session will run, with some predicting Congress could adjourn as early as this week or next. The one substantive issue on the congressional agenda remains funding the government.
Following passage of the CHOICE Act by the Committee, the trade groups responded positively, as CUToday.info reported here.