Obama Signs Financial Reform Bill (Monitor: July 26, 2010)
The largest reform of the financial industry since the 1930s was signed into law Wednesday by President Barack Obama. The broad reforms will restructure the regulation of large financial institutions and provide new consumer protections.
According to CUNA News Now (July 22, 2010):
"The legislation, which was officially approved by the Senate last week, makes permanent an increase in federal deposit insurance to $250,000 per account, and extends on an equal basis for credit unions and banks unlimited federal insurance for non-interest bearing accounts. The legislation also establishes a consumer financial protection bureau, and credit unions with assets under $10 billion will not be examined by the new bureau once it is established."
Credit unions, while not the main target of the reforms, will face an increased regulatory burden and a probable reduction in interchange income. While CUNA and the MCUL were not supportive of Sen. Durbin's interchange amendment added late in the legislative process, the overall impact on credit unions will be much less severe than for Wall Street banks.
See CUNA's News Now for more information.