Contending that banking regulators have rubber-stamped thousands of mergers, two Democratic lawmakers have introduced legislation that would require a more thorough review of such deals.
The bill, introduced in the Senate by Sen. Elizabeth Warren, D-Mass. and in the House by Rep. Jesús “Chuy” García, D-Ill., does not include credit union deals in the list of mergers they believe should be more closely reviewed.
Fintechs—not credit unions—emerged as the main villain Wednesday at a House Financial Services Committee subcommittee hearing exploring consolidation in the financial services industry.
A hearing on consolidation in the financial services industry will feature the perspective of the American Bankers Association, which has warned about the impact of credit unions purchasing banks.
The Sept. 29 hearing of the House Financial Services Committee’s Consumer Protection and Financial Institutions Subcommittee, will not feature a representative of the credit union industry.
The nation’s community bankers are urging a House subcommittee to use an upcoming hearing to investigate the purchase of community banks by credit unions.
Draft tax legislation to be marked up by the House Ways and Means Committee this week does not contain a controversial proposal to require financial institutions to report the inflows and outflows from customer accounts to the Internal Revenue Service.
The House Financial Services Committee on Monday will mark up legislation that would, among other things, provide $10 billion to the Community Development Financial Institutions program to build or preserve more than 170,000 “affordable” homes.
As the House Financial Services Committee prepares for a markup of legislation next week, the National Association of Federally-Insured Credit Unions is asking the panel to consider legislation that would allow credit unions to expand their services to underserved areas.
A proposal that would allow all credit unions to provide financial services to underserved areas simply is a power-grab by an industry hungry for expansion, the American Bankers Association charged Monday.
Credit union trade groups once again are pushing a bill that would convert the Consumer Financial Protection Bureau into a five-member commission—a measure that has slim chances of being enacted in a Democratic-controlled Congress. The National Association of Federally-Insured Credit Unions and the Credit Union National Association joined banking trade groups and a group representing the payday lending industry in endorsing H.R. 4773, which was introduced by Rep. Blaine Luetkemeyer, R-Mo., the ranking Republican on the House Financial Services Committee’s Consumer Protection and Financial Institutions Subcommittee. The legislation has long been a Republican talking point. However, House Financial Services Chairwoman
House Financial Services Committee Chairwoman Rep. Maxine Waters, D-Calif., has warned federal financial regulators that “robust supervision and enforcement” is needed to ensure that financial institutions help homeowners avoid foreclosures and weather the financial hardships caused by the pandemic.