CUNA Hopes to Attach MBL to TAG Extension (Misc News: July 10, 2012)
CUNA is working with lawmakers to craft a set of bills that would include member business lending expansion that might be palatable to all sides in the standoff.
The package, which would include items both credit unions and banks said they need to better serve small businesses, would end legislative gridlock among lawmakers who have told the trade association that they don’t want to vote on the member business lending bill because it would alienate them from valuable credit union or bank supporters, CUNA News Now reported.
Ryan Donovan, CUNA senior vice president for legislative affairs, said while credit unions have identified MBL as key to serving small businesses, banks are lobbying for an extension of the FDIC’s Transactional Account Guarantee program, which provides deposit insurance coverage for noninterest-bearing transaction accounts.
As CUNA works with Senate leadership in an attempt to add MBL to TAG, the MCUL continues to lobby Michigan’s delegation for additional cosponsor support of MBL legislation. So far in 2012, the MCUL has recruited a record nine cosponsors of H.R. 1418 in the U.S. House in addition to gaining cosponsor support from both Michigan Sens. Carl Levin and Debbie Stabenow.
MBL legislation will likely be a topic of discussion later this week at the MCUL’s Annual Convention and Exposition in Traverse City, where Sen. Stabenow, D-Lansing, is scheduled as a guest speaker on Saturday morning.
TAG is set to expire Dec. 31. According to the FDIC, TAG deposits totaled $1.4 trillion as of last Dec. 31.
The NCUA provides similar credit union deposit insurance coverage for noninterest-bearing transaction accounts, separate from general share insurance coverage. It is also set to expire at the end of this year.
But Donovan said that while the noninterest-bearing account coverage is appealing to credit unions, raising the MBL cap would be the “best thing Congress could do for credit unions serving small businesses.”