Gov. Vetoes FOM Bill

December 19, 2013 at 8:17 am Leave a comment

I wish I had better news this morning.

Late yesterday, in spite of an intense lobbying push by credit unions and the Association, Governor Cuomo vetoed legislation that would have given state chartered credit unions greater flexibility in designing their fields of membership with the approval of the Department of Financial Services (S2089, Griffo/A.3510, Robinson).

Under the bill, state chartered credit unions would still be subject to field of membership constraints, but they would have had greater flexibility in seeking to mix and match those fields of membership. For example, a credit union whose membership field is comprised of employees of the local library would have been allowed to apply for the right to serve the town in which the library is based.

On the bright side, and as Martin Luther King liked to say, you don’t get to Easter without Good Friday. Credit unions may still have a road map for addressing the Governor’s concerns and getting similar legislation passed. Legislators from both parties and both federal and state credit unions contacted the Governor’s office in support of the measure indicating that there is still broad-based support for the proposal.

. . . . .

The White House announced that it will nominate Texas tax attorney Mark McWatters to the NCUA Board to replace outgoing member Michael Fryzel, whose term has expired. Judging by his resume, the selection of McWatters is intriguing. For one thing, he is a former counsel to Representative Jeb Hensarling, who is now Chairman of the powerful House Financial Services Committee. In addition, as a former member of the TARP Congressional Oversight Panel, McWatters appears to be well schooled in the consequences of the Great Recession and the Government’s bailout.

By the way, NCUA board members are beginning to remind me of those people who refuse to leave parties long after the vast majority of guests have had the good sense to go home. It isn’t the fault of the board members, but it is amazing how dysfunctional the nomination process has become that board members have to stay for months and sometimes years before a replacement can be made.

. . . . . . .

Finally, in case you missed it, the tapering has begun! For better or for worse, the FED has decided to trim its $85 billion purchase of agency bonds and mortgage-backed securities by $10 billion a month. At the same time, it stressed that future reductions would be dependent on continued economic growth and that it intends to keep the cost of borrowing FED funds at historically low levels for some time to come.

Entry filed under: Advocacy, Compliance, Economy, Regulatory. Tags: , , , , , .

Another Body Blow To The Mortgage Market Targeted For The Holidays

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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