Brown, Vitter Offer Relief For Banks

A bill introduced Wednesday by Sens. Sherrod Brown, D-Ohio, and David Vitter, R-La., to end federal bailout aid for large banks while proposing a new capital system for banks should be expanded to address risk-based capital  for credit unions, NAFCU Vice President of Legislative Affairs Brad Thaler said Wednesday.

Thaler wrote the two senators late Tuesday urging them to consider addressing the outdated, fixed-ratio capital system in place now for credit unions as they prepared to release their bill. “Establishing a 21st century capital system for credit unions that takes in to account the risk profile of each asset portfolio – a key element in NAFCU’s five-point plan for credit union regulatory relief – is key to ensuring credit unions remain nimble and responsive to market changes,” Thaler said Wednesday.

The Brown-Vitter bill was offered as community bankers were convening a meeting in Washington, which continues today.

Besides revamping banks’ capital framework, S. 798, the Terminating Bailouts for Taxpayer Fairness Act, also includes regulatory relief provisions to end the annual privacy policy notice mailing requirement, update the rural definition for qualified mortgages and improve the process for appealing examination findings.

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