The House Financial Services Committee (HSFC) is marking up a bill (H.R. 4464) today that would repeal the National Credit Union Administration's risk-based capital rule that is scheduled to go into effect on January 1, 2019.
Given what has transpired with taxi medallion lending credit unions, repealing this risk-based capital rule appears to be a bad idea from a policy perspective.
If this rule was in effect in 2012 or 2013, it would have required these taxi medallion lending credit unions to hold more capital or net worth to offset the risk posed by these credit unions to the National Credit Union Share Insurance Fund.
See the bills that are being marked up.
Used to think Congress was simply asleep when it came to credit unions.
ReplyDeleteUsed to think they’re just focused on handouts from lobbyists and donors.
Now, it’s clear with this, there’s certainly an element of sheer stupidity.