Washington’s Decisions Have Direct Impact on New York State

December 4, 2020 at 10:15 am Leave a comment

There have been few instances where machinations in Washington have had a more direct impact on New York State than what we’ve seen unfolding in the last few days. Pay attention, because for those of you who join the Association in Zoom Advocacy on both the state and federal level, this will impact what we say and how we say it. 

First, there is the news that Congress is coalescing around a relief package south of $1 trillion. While this is good news for persons peering over the unemployment cliff at the end of the year, it is safe to say that the reported size of the package leaves little room for the type of massive infusion of federal funds Governor Cuomo was hoping for just weeks ago. I’ve read widely varying estimates of just how big a deficit New York faces, but we could easily be talking about a $14 billion hole. A deficit of this size could lead to layoffs of state workers in the Capital Region and exacerbate local employment trends. It will also mean that now more than ever, the state should look to implement cost-free mandate relief in the form of localities being authorized to place public deposits in their credit unions. 

Second, it looks like another Democratic New York Congressman is about to gain a national profile. Hudson Valley Rep. Sean Maloney has been elected to lead the Democratic Congressional Campaign Committee. This is a plum assignment for any ambitious member of Congress in normal times, but with 2022 shaping up to be a critical election cycle for the House Democratic Majority, Maloney has taken on a high-risk, high-reward responsibility. Not only will he have to reshape the party’s messaging in the aftermath of its disappointing performance this year, but he will be doing so with Republicans in reach of retaking the majority. He will also be helping to coordinate campaigns in an election cycle that will be the first impacted by redistricting. 

Speaking of New York Congressional Representatives, we are still waiting to see the results of one of the nation’s closest races in NY-22 between incumbent Rep. Anthony Brindisi and challenger Claudia Tenney, the former Republican Congresswoman unseated by Brindisi in 2018. 

The Financial Stability Oversight Council (FSOC): The Big Get Bigger in CU Land

The FSOC used its annual report to Congress to highlight the continuing risk to financial stability posed by the pandemic. 

Though policy actions to minimize the effects of the pandemic have been effective at improving market conditions, risks to U.S. financial stability remain elevated compared to last year. In addition, the global outlook for economic recovery is uncertain, depending on the severity and the duration of the ongoing pandemic.

In the section of the report dealing with the credit union industry, the Council highlighted consolidation trends. It noted that the number of credit unions with less than $50 million in assets fell to 2,811 in the second quarter of this year, meaning that there has been a 28% decline in the number of credit unions in the last five years. On the bright side, total industry assets have grown at an average annual rate of 8.4% over the same period. According to a report, the financial performance of credit unions has been “relatively solid” – how’s that for a mealy-mouthed compliment? Incidentally, you can find the interesting credit union information on page 93 of the report. 

On that happy note, enjoy your weekend. Make sure you set aside time on Sunday to watch the New York Giants, the worst first place team in the history of the NFL as they continue their unstoppable march to the playoffs with a 4-7 record.

Entry filed under: Advocacy, COVID-19, Economy, Federal Legislation, Legal Watch, New York State, Political, Regulatory. Tags: , , , , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, 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. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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