ARLINGTON, VA — Unsurprisingly, NASCUS this morning added its voice to the chorus of credit union associations reacting negatively to the recent financial regulatory proposal from the Bush Administration.

Among other things, the proposal suggests “rationalizing” the system of state regulation of banks and making participation in federal insurance conditional on accepting federal oversight. As an association state credit union regulators, NASCUS took issue with this in particular.

“NASCUS will thoroughly review the proposal and continue working with Treasury and others to ensure that state authority is maintained over state-chartered institutions. It is the role of state governments to determine proper regulation of its state-chartered institutions including credit unions,” said NASCUS CEO Mary Martha Fortney. “The dual chartering system is threatened by the preemption of state laws and the push for uniformity.”

“Credit union dual chartering has benefited the nation and the states for nearly 100 years. The dual chartering concept is based on the important foundation of competition and choice between state and federal charters. Disruption of the current structure would have various negative impacts. It would diminish state and federal regulator cooperation, tip the balance of power between states and the federal government and minimize the economic benefit and enhanced consumer protections available to states through state-chartered institutions,” she added.