The letter was sent in advance of Tuesday’s Senate Banking Committee hearing on the annual report of the Financial Stability Oversight Council chaired by Treasury Secretary Jack Lew.
“Our nation’s credit unions are struggling under an ever-increasing regulatory burden,” NAFCU President and CEO Fred Becker said. “As the tide of regulation rises, there has never been a more critical time for the FSOC, led by Secretary Lew, to facilitate regulatory coordination among its member regulators.”
Becker said FSOC member agencies, which include the Treasury, SEC, CFTC, Federal Reserve, OCC, CFPB, National Credit Union Administration, Federal Housing Finance Agency and FDIC, should coordinate their rulemaking efforts and information-sharing efforts.
“Under the Dodd-Frank Act, the FSOC is effectively charged with ameliorating weaknesses within the regulatory structure therein providing a safe and more stable system as a whole,” Becker said. “…Ensuring that the FSOC fulfills its duty to facilitate regulatory coordination would be a positive step in assisting our nation’s credit unions as they navigate this unprecedented, and oftentimes unwarranted, amount of government regulation.”
During Lew’s testimony before the committee on Tuesday, he said the council and its members are committed to strengthening the coordination of financial regulation at home and abroad.
“In developing and implementing the international financial regulatory reform agenda, the Council members support the development of policies that promote a level playing field, mitigate regulatory arbitrage and address regulatory gaps primarily through members’ engagement with the G-20 and the Financial Stability Board,” Lew said.
Lew also said implementation of Dodd-Frank and coordination on G-20 reforms have contributed to a “more resilient and stable” financial system.