During a campaign stop in Iowa last week, Republican presidential candidate Rick Perry said he would repeal sweeping regulations on the financial industry.
"One of my top priorities that I'll share is to repeal this onerous Dodd-Frank regulatory legislation," Perry said, the DailyIowan.com reports. "And it's no wonder that banks and credit unions are afraid to lend money, because it's the onerous regulatory climate that's killing the jobs, that's killing this economy.
“We need to consider alternatives, such as freeing up lending credit unions to help provide for Main Street, creating jobs, income, the tax revenue, that’s what you have to do."
Iowa credit union officials who feel that recent federal regulations put an unfair burden on smaller banks and credit unions said they were pleased with Perry’s promise.
"We're painting everyone with the same brush, and that's probably not a good thing," Jeff Disterhoft, the president of the University of Iowa Community Credit Union, said, according to the DailyIowan.com. "That's a knee-jerk reaction, to paint everyone with the same brush size when Main Street lenders such as ourselves weren't responsible or involved in a lot of the ails that contributed."
Credit unions have also been fighting regulations from the 1990s that placed a 12.25 percent business lending cap on credit union’s total assets.
"It's very hard for small credit unions to have these resources to comply," Pat Jury, the president of the Iowa Credit Union League, said, the DailyIowan.com reports. "And we're very consumer-focused and consumer-centric institutions, so we aren't able to comply and there is a threat for the small institutions, where the CEOs have to do the marketing and the janitorial work and regulatory compliance, that it gets to be so much that it gets to be where they have to make a decision on where their priorities are."
The Credit Union National Association has undertaken massive lobbying efforts to raise the cap, which has led Sen. Mark Udall (D-Colo.) to introduce a bill to raise the cap to as much as 27.5 percent. Rep. Ed Royce (R-Calif.) has introduced companion legislation in the House.