Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that there should not be any relaxation of regulations that have tightened oversight of Wall Street. “Progress has been made. I wouldn’t want to roll that back off the biggest banks,” Kashkari said at an event in Minneapolis, when asked about the fate of the Dodd-Frank reform act that was passed in part to prevent big banks from causing a repeat of the 2007-2008 financial crisis.
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The Credit Union National Association today urged Congress to direct the CFPB to exempt credit unions and small banks from its rulemaking. “The Bureau’s unwillingness to exercise fully its exemption authority has resulted in credit unions reducing the availability of or eliminating entirely, safe and affordable financial products from the market,” the group said in a letter to Senate Banking Committee Chairman Mike Crapo and ranking member Sherrod Brown.
Credit unions provide access to affordable savings, lending, and credit to its 106 million account holders. As member-owned cooperatives, a credit union’s success is tied to the financial health of the people who walk through its doors. This is why they remain the safest and most consumer-friendly option in banking.
As a member-owned cooperative, a credit union’s success is literally tied to the financial health of the people who walk through its doors every single day.
This symbiotic structure is why credit unions remain the safest and most consumer-friendly option in banking. It’s also a clear example of why you didn’t see the government bailing out credit unions after the 2008 financial crash, unlike the big banks.
Unfortunately, the federal government seems to have forgotten who was responsible for that crisis.
A welcomed theme in the recent election cycle was promise of a thoroughgoing review of unneeded regulations. Regulations that never were subjected to consumer cost-benefit analysis, or that pick winners and losers, or that are in a constant state of flux are prime candidates for repeal. Within the financial community many regulations have arrived as tentacles of Dodd Frank, but there already were many that needed to be aggressively pruned.