WASHINGTON — Treasury Secretary Henry Paulson finds the British, single financial regulator model appealing but industry figures have argued otherwise.

CUNA and NAFCU each stated that credit unions are best regulated by a separate and independent regulator. "As cooperative, not-for-profit organizations, credit unions are unlike other financial depository institutions," NAFCU wrote in its comment letter. "Thus, NAFCU believes that it is imperative that credit unions are appropriately regulated by an independent agency that recognizes and understands the unique nature of the credit union industry."

Though CUNA's comment letter was not immediately available, Senior Vice President and Deputy General Counsel Mary Dunn explained, "We unearthed the fact that credit unions used to be under the FDIC and there were a lot of quotes when we were under the FDIC about how the FDIC could care less. We also quoted back to the Treasury comments from Don Powell, the immediate past chair of the FDIC, saying that credit unions should be taxed."