Possible Biden Administration Poses Challenges for Credit Unions, Donovan Says
Credit unions are advised to pay close attention to what the CFPB does as the current or new administration moves forward.
If Joe Biden moves into the White House next year, credit unions face a fight to keep many of the regulatory changes made by the Trump Administration during the past four years, CUNA Chief Advocacy Officer Ryan Donovan said Thursday.
Credit unions will have to pay particular attention to the CFPB, where a President Biden certainly will replace current Director Kathy Kraninger very quickly, Donovan told credit union officials during a webinar on the election Thursday.
Among those being mentioned for director in a Biden Administration is former Director Richard Cordray, who was appointed by former President Obama.
A new director is likely to reverse many of the policies adopted by the Trump Administration, Donovan said.
For instance, he said that a new director is likely to restore a strict payday lending rule that was adopted during the Obama Administration.
“We need to pay close attention to what the CFPB does,” Donovan said.
Donovan and CUNA President/CEO Jim Nussle acknowledged that the results of the presidential race and even which party will control the Senate remains an open question.
“It ain’t over till it’s over,” Nussle quipped during the hour-long session.
The two said there is a likelihood that divided government will continue, with one party controlling the Senate and one party controlling the House. Nussle added that groups like CUNA could have an advantage in such a scenario. “When a party controls all of the government, they talk to each other,” Nussle said. In a divided government, officials must listen to others, including trade groups like CUNA, Nussle said.
Donovan ran through a couple of scenarios for how the government may operate next year.
He said if President Trump manages to win, gridlock in the capital will only get worse. “I would set low expectations for legislative movement,” he said.
If Biden is elected, he likely is going to be caught in a tug-of-war between progressives and moderates, Donovan said. He added that Biden will have a unique relationship with Congress, having served in the Senate for so long.
If Republicans continue to control the Senate, Donovan said progressives will have a difficult time even if Biden occupies the White House.
“The progressive agenda has been stymied,” Donovan said. Their ability to impact policy has been decreased.”