WASHINGTON–Sen. Mike Crapo (R-ID), chair of the Senate Committee on Banking, Housing and Urban Affairs, has sent a letter to the Fed, the OCC the FDIC and the NCUA in which he said “due to the unprecedented shutdown of businesses to prevent the spread of COVID-19, bold and dramatic steps are needed.”
Senators from both parties have also written similar letters to the agencies.
Crapo told the heads of the regulatory agencies that in order to boost economic activity they need to find more ways to help strengthen the Paycheck Protection Program, as well as to “right-size regulations to promote lending.”
To that end, Crapo said he wants the agencies to provide the Banking Committee with statutory changes and recommendations necessary to stabilize markets and expand lending during the COVID-19 crisis.”
“More must be done to ensure financial institutions are able to lend to consumers and businesses during the COVID-19 crisis,” wrote Crapo.
In response to the Crapo letter, John McKecnhie, senior partner with the Washington advocacy firm Total Spectrum, said, “The Chinese have a character in their alphabet that means both “crisis” and “opportunity.” This letter from Chairman Crapo is the latest reminder of how true that is. NCUA should take as broad a look as possible at reforms that will help modernize and improve the way credit unions serve consumers. And the entire credit union movement should look to seize the moment as well. Now is the time.”
CUNA Response
In response to the letters by the Senators, CUNA CEO Jim Nussle said, "The broad bipartisan commitment that lawmakers are providing to this crucial program indicates just how vital a role small businesses play in our economy. For America’s credit unions, these continued adjustments to fine tune this program are imperative to maximizing the support we can provide on the ground for these vital institutions.”