WASHINGTON — While Treasury Secretary Henry Paulson might find the British, single financial regulator model appealing, industry figures are not on the same page.

The current financial services regulatory system is not perfect but it is working was the theme of the comments from credit union-related entities on Treasury's request for comments regarding regulatory streamlining. "Most would agree that if the regulatory system was created by design, the current system would not have been deliberately engineered; however, the current system has provided competition, innovation and diversity," NASCUS Executive Vice President of Government Relations Sandra Troutman acknowledged in her comment letter.

The two major national trade associations as well as the state and federal regulators each stated that credit unions are best regulated by a separate and independent regulator at the federal level and that the vitality of the dual chartering system of credit unions is crucial. "As cooperative, not-for-profit organizations, credit unions are unlike other financial depository institutions," NAFCU President/CEO Fred Becker wrote in his 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."