Compliance Blog

Yesterday, the U.S. Senate passed the conference committee report H.R. 4173.  Now Reg Reform heads to President Obama's desk for his signature, which could happen at any time. Here are some thoughts:

• The world won't change, at least not right away.  The Fed has 9 months to craft interchange regulations.  And the CFPB does not exist.  And they are the ones that will be doing the heavy lifting in some areas. First, they have to do mundane things, such as hire staff, get a building, and design a logo.  I bet an eagle is involved somehow.  
• NCUA is still an independent agency, although those credit unions over $10 billion (no inflation adjustment is included) would be subject to examination and enforcement by the CFPB.   Keep in mind that the final conference report would create a “Financial Services Oversight Council” which would help to oversee systemic risk and could veto, with a two-thirds vote threshold, CFPB rules. 
• Share insurance protection is now permanently at $250,000.

Moving forward, be prepared for an avalanche of regulatory proposals.  Once this becomes law and the mandatory rule-makings begin, your input will be crucial.  

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NCUA and others issued this statement to urge financial institutions to work with consumers affected by the Gulf of Mexico oil spill. Regulators usually issue this type of guidance after natural, and now man-made, disasters.

Chairman Debbie Matz also urged credit unions to maintain strong due diligence over energy loan programs. 

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Next week, I'll be at NAFCU's Annual Conference in Chicago, Illinois.  I'll blog about my experiences there, being on the lookout for anything that might interest compliance peeps.  You should start seeing those posts on Wednesday.  

Have a great weekend, everyone!