‘We Can Work With Waters:’ CU Lobbyists
Waters has been a staunch defender of Dodd-Frank and has fought to ensure that the CFPB maintains a strict regulatory regime.
Credit union lobbyists on Wednesday expressed optimism that they will be able to work with Rep. Maxine Waters (D-Calif.), the likely chair of the House Financial Services Committee, despite the Californian’s zeal for a strict regulatory agenda.
“She has been a champion for credit unions,” Ryan Donovan, CUNA’s chief advocacy officer said.
The Senate will remain in Republican hands next year. But the Democrats gained control of the House Tuesday night, which likely means that Waters, the Financial Services Committee’s ranking Democrat likely, will become chairman of the panel.
“She does know how to cut a deal,” said Geoff Bacino, a partner with Bacino & Associates and a former NCUA board member. He added that Waters is “passionate, but reasonable.”
Waters has been a staunch defender of Dodd-Frank and has fought to ensure that the CFPB maintains a strict regulatory regime. And she has singled out larger financial institutions for criticism.
She has gone so far as to say that big banks, such as Wells Fargo, should be broken up.
“She’s been very outspoken about not letting banks off the hook,” said Carrie Hunt, NAFCU’s executive vice president of government affairs and general counsel. She added, “We want to make sure that credit unions aren’t swept up into any legal and regulatory regime intended to curb the bad actors.”
Waters is likely to drastically increase oversight of the Trump Administration. And she has offered a variety of amendments to legislation aimed at obtaining information about the Trump family finances.
Counting retirements and defeated incumbents, the Financial Services panel may have more than 20 new members; there currently are 60 members of the panel.
“In some cases, it’s back to the drawing board when it comes to building relationships,” said John McKechnie,” senior partner at Total Spectrum, who also served as CUNA’s chief federal lobbyist.
“There’s going to be a need to do a lot of education,” Donovan said.
On the Republican side of the panel, Chairman Jeb Hensarling is retiring. Rep. Patrick McHenry (R-N.C.) is the committee’s vice chair and could seek the ranking member’s position. However, Donovan said that Rep. Blaine Luetkemeyer (R-Mo.), current chairman of the Financial Services panel’s Financial Institutions and Consumer Credit Subcommittee, may seek the ranking member’s position.
McKechnie, Donovan and others said that in the new Congress, there may be a renewed push for data security legislation.
Bacino said that the House and Senate had better try to enact legislation, adding that this election demonstrated that voters are not shy about kicking incumbents out of office.
“Two years from now, if you do nothing, you may be looking for a new job,” he said. “They don’t give you much time to produce.”
Donovan said he expects that the Financial Services panel will concentrate on legislation, as well as oversight, during the upcoming Congress.
“I don’t think the entire agenda of the Financial Services Committee will be taken up by oversight and investigations,” he said.
Cliff Stanford, leader of Alston & Bird’s bank regulatory team agreed. “There are opportunities for legislative movement,” he said, adding that in addition to data security legislation, Congress might consider changes in anti-money laundering laws.
During its upcoming lame duck session, Congress must enact a Continuing Resolution or omnibus spending bill to fund parts of the government past Dec. 7, when the current Continuing Resolution expires.
Congress could choose to extend funding until sometime next year, punting spending decisions until the 116th Congress is seated.
The Senate also has a few key nominations that will expire at the end of the year if the nominees are not confirmed.
President Trump has nominated Kathy Kraninger to head the CFPB and Republican Rodney Hood, a former NCUA board member, for a seat on the NCUA board.
There is another vacant seat on the NCUA board; that nominee may not be a member of the president’s political party. Several sources said that Hood’s nomination is unlikely to be considered until there is a Democratic nominee to pair it with in an effort to ease confirmation.
That may not occur until the 116th Congress convenes.
Bacino said that if Democrats had captured control of the Senate, there would have been much more pressure on Republicans to consider nominations.
Meanwhile, CUNA spent almost $7 million on this mid-term election.
“We were able to help credit union incumbents even in tough races,” said Trey Hawkins, CUNA’s deputy chief advocacy officer for political action.
He acknowledged that CUNA contributed heavily to moderate Senate Democrats.
“They were credit union champions in close reelection battles,” he said, adding that they were original sponsors of the Dodd-Frank overhaul bill that was enacted during the current Congress.
Hunt said that each party controlling a house on Capitol Hill could lead to gridlock, adding that Tuesday’s election shows “We still have a lot of disagreements in this country.”
However, she said she is optimistic about the reception credit unions will receive on Capitol Hill.
“It’s a new day, but credit unions have support on both sides of the aisle,” she said.