LAS VEGAS — NCUA Senior Policy Advisor Gary Kohn had a bit of advice for those concerned about the future of credit unions under the Department of Treasury's Blueprint proposal: "don't lose any sleep over it."
Kohn discussed some of the highlights of the proposal that includes a provision eliminating all charters, including the credit union model. There is a "reserve option" for cooperative ownership structure, essentially, a community option that would provide tax exempt status, he added.
"The proposal is taking some aspects of credit unions and shrinking [the model] way down," Kohn said.
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Some of the provisions could see the light of the day, Kohn said. For instance, regulation of the mortgage brokerage industry and combining the FDIC and the Office of Thrift Supervision. The other short term and long term provisions will take an overwhelming amount of support to see them through to the end, he told attendees.
"In order to get something like this done, there needs to be strong leadership from the president and Congress," Kohn said. "Don't lose sleep on this. Constantly let Congress know how you feel."
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