WSJ/Forbes: Dodd-Frank Concerns Posted by AVCU on 12:33 PM

The Wall Street Journal and Forbes both reported on credit unions' and small banks’ concerns over the Dodd-Frank Act earlier this week.

The WSJ article, “Small Banks, Credit Unions Fear US Consumer Bureau Rules,” reviewed the testimonies of representatives of small banks and credit unions presented to the House Financial Services subcommittee this past Wednesday. The article quotes testimony from SpiritBank Chief Executive Albert Kelly, Jr., Gerber Federal Credit Union President John Buckley, Jr., and CUNA President/CEO Bill Cheney. Buckly urged Congress to pursue a number of fixes to the Dodd-Frank legislation to help relieve new regulatory burdens on credit unions. Cheney called on lawmakers to insure the Consumer Financial Protection Bureau's actions don't hit credit unions with unnecessary and burdensome regulation. The WSJ article also points out concerns over the Durbin interchange controls amendment that "would dramatically reduce debit card processing fees banks charge retailers.”

The Forbes article, “The Durbin Amendment’s Effect on Credit Unions,” focused on the proposed interchange cap. Credit unions, referred to in the article as “the not-for-profit and generally more consumer-oriented cousins to banks”, argue that without interchange fees, “they will be forced to raise fees on checking accounts, make fewer loans, and raise interest rates beyond already-unprecedented levels.”

Read the Wall Street Journal article here, and the Forbes article here.