GAO Reports FDIC Vulnerable to ‘Regulatory Capture’—A Charge Often Leveled at NCUA

Bankers have long complained that the National Credit Union Administration is a cheerleader for the industry, but now one of their banking regulators is being accused of so-called “regulatory capture.”

In a new report, the Government Accountability Office said that the Federal Deposit Insurance Corporation failed to provide documentation necessary to demonstrate the objectivity of examiners.

Puerto Rico’s Cooperativas Resilient Despite Crisis, Lack of Oversight, Regulatory Board Says

Puerto Rico’s cooperativas—island guaranteed credit unions—have thrived despite repeated crises and poor supervision by its regulator, the territory’s oversight board said in a report last week. “The cooperative system proved to be resilient through…disasters and played an important role in enabling the recovery process to start,” the oversight board, created by Congress to oversee the island’s recovery from bankruptcy said in a fiscal report that must be prepared for all government agencies on the island. Puerto Rico has faced a fiscal crisis, devastating damage from hurricanes and now the coronavirus crisis. The oversight board has the responsibility of assisting the

Former Rep. Barney Frank: Dodd-Frank Has Held Up ‘Pretty Well’

Ten years after President Obama signed the (Dodd-Frank) Wall Street Reform and Consumer Protection Act, the law has “held up pretty well,” former Rep. Barney Frank (D-Mass.) said Tuesday. Speaking at a virtual conference co-sponsored by the Brookings Institution and the University of Michigan, Frank said that Republican members of Congress have attempted to repeal the Obama Administration’s health overhaul bill “every other week,” but have not mounted a serious attempt to repeal Dodd-Frank. “It was too popular,” Frank said. Obama signed Dodd-Frank on July 21, 2010. The law is informally named after Frank, who chaired the House Financial Services

CDC Issues COVID-19 Guidance for Financial Institutions

Employees of financial institutions face a low risk of exposure for COVID-19 if the institutions take precautions, such as shields at teller counters, the Centers for Disease Control and Prevention said last week.

The CDC has issued guidance for the opening of various facilities that have been closed due to the pandemic. While most of the bank and credit union document covers such now-common steps as employee screening and social distancing, some of the recommendations specifically address issues at financial institutions, such as credit unions.