Legislation sought by the banking lobby to reauthorize the Transaction Account Guarantee program, failed to garner enough support on a procedural vote in the Senate, meaning it likely won’t go forward in this Congress unless it is attached to another piece of legislation moving in the next week. The measure needed 60 “yea” votes to overcome a procedural budget point of order, but its proponents could only garner 50 supporters in a nearly party-line decision.
The procedural defeat of TAG could provide an opportunity for Congress to consider credit unions’ MBL bill yet in this lame-duck period. While CUNA has said Sen. Mark Udall, D-Colo., does not have enough support to move the bill to a floor vote, it still could be attached to another bill before Congress recesses next week.
"Time is running out in this Congress for action on our job-creating small business legislation,” MCUL & Affiliates CEO David Adams said. “The defeat of TAG was important for two reasons. First, it would be a shame for banks to get something that they badly want at a time when they're the only ones fighting against credit unions' MBL legislation. And second, this leaves the door open for a slight possibility of a package deal being done before Congress wraps up its 2012 business."
The bill would allow credit unions that meet strict criteria to increase lending to small businesses from 12.25% of assets to 27.5%. CUNA has estimated that MBL will pump $13 billion into the economy, creating 140,000 jobs in the first year.