wlmmyers
03-28-1998, 02:32 PM
BACKGROUND: The House Banking Committee voted to allow employee-based
credit unions to serve an unlimited number of small companies.* The
compromise measure is an effort to partially roll-back a recent U.S.
Supreme Court ruling prohibiting credit unions from recruiting members
from more than one small business.* The bill, however, does limit credit
unions from adding to their field of membership only those companies
with more than 3,000 employees.* The bill was approved on final passage
by a voice vote.
The Committee-approved bill also includes provisions that for the first
time would require the National Credit Union Administration to apply a
Community Reinvestment Act-like test for determining whether credit
unions are meeting, in the case of geographically-based institutions,
local community credit needs, including the needs of low and moderate
income areas.* Employee-based institutions would have to demonstrate
that they were adequately serving the needs of their entire field of
membership.* The CRA-type provisions were included at the insistence of
Rep. Kennedy (D-MA) and other House Democrats.* Credit unions did not
oppose these new obligations.
Perhaps the biggest controversy at the mark-up resulted from an effort
by Rep. McCollum (R-FLA) to strike the CRA-type provisions from the
bill.* After a heated debate, the amendment to strike was defeated by a
vote of 22-32.** Most Republicans voted for this amendment.* However,
Chairman Leach (R-IA), joined with five other Republicans and all the
Democrats present in voting against the McCollum amendment.*
Special cheers should go to Kennedy for pushing for the inclusion of
these provisions, and again for his passionate opposition to the
McCollum amendment.* Reps. Frank (D-MA), LaFalce (D-NY), Vento (D-MN)
also weighed-in against the amendment.
Indications are that the House Republican leadership will now seek to
join the credit union bill together with the "financial modernization"
bill (H.R.10) that is slated to go to the floor next week (see related
story).* Stay tuned.
FOR FURTHER INFORMATION CONTACT: Allen Fishbein or Debby Goldberg at
CCC's Neighborhood Revitalization Project, by calling 202-342-0567 or
faxing to 202-333-5462.
This post transferred from the cdb-l mailing list
credit unions to serve an unlimited number of small companies.* The
compromise measure is an effort to partially roll-back a recent U.S.
Supreme Court ruling prohibiting credit unions from recruiting members
from more than one small business.* The bill, however, does limit credit
unions from adding to their field of membership only those companies
with more than 3,000 employees.* The bill was approved on final passage
by a voice vote.
The Committee-approved bill also includes provisions that for the first
time would require the National Credit Union Administration to apply a
Community Reinvestment Act-like test for determining whether credit
unions are meeting, in the case of geographically-based institutions,
local community credit needs, including the needs of low and moderate
income areas.* Employee-based institutions would have to demonstrate
that they were adequately serving the needs of their entire field of
membership.* The CRA-type provisions were included at the insistence of
Rep. Kennedy (D-MA) and other House Democrats.* Credit unions did not
oppose these new obligations.
Perhaps the biggest controversy at the mark-up resulted from an effort
by Rep. McCollum (R-FLA) to strike the CRA-type provisions from the
bill.* After a heated debate, the amendment to strike was defeated by a
vote of 22-32.** Most Republicans voted for this amendment.* However,
Chairman Leach (R-IA), joined with five other Republicans and all the
Democrats present in voting against the McCollum amendment.*
Special cheers should go to Kennedy for pushing for the inclusion of
these provisions, and again for his passionate opposition to the
McCollum amendment.* Reps. Frank (D-MA), LaFalce (D-NY), Vento (D-MN)
also weighed-in against the amendment.
Indications are that the House Republican leadership will now seek to
join the credit union bill together with the "financial modernization"
bill (H.R.10) that is slated to go to the floor next week (see related
story).* Stay tuned.
FOR FURTHER INFORMATION CONTACT: Allen Fishbein or Debby Goldberg at
CCC's Neighborhood Revitalization Project, by calling 202-342-0567 or
faxing to 202-333-5462.
This post transferred from the cdb-l mailing list