WASHINGTON—Two former financial services regulators penned an op-ed piece in the American Banker today in opposition to a proposed risk-based capital system for credit unions.
Former NCUA Chairman Norm D’Amours teamed up with former FDIC Chairman William Isaac to attack credit unions’ attempts at a risk-based capital system. "We believe this would be very bad public policy. We sincerely hope the lessons of the savings-and-loan fiasco have not been so soon forgotten," the pair wrote.
According to D’Amours and Isaac, the 2% leverage ratio contained in the Credit Union Regulatory Improvements Act is "meaningless" and "would be virtually worthless as a supervisory tool."
" If the Credit Union Regulatory Improvements Act moves forward, Congress needs to be careful about granting too much discretion to the NCUA to define risk assets, as the bill currently proposes," they wrote. "History has shown that the regulators have at times been hesitant to impose tough standards on the industry they regulate."