Association President Testifies at NYS Senate Hearing
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ALBANY, NY (10/27/2009)(readMedia)-- Credit Union Association of New York President/CEO William J. Mellin testified on behalf of the credit union community at a NYS Assembly Banks Committee hearing Oct. 23. The hearing, held in New York City, was called to determine what level of regulatory authority New York State should exercise to protect New York financial service entities and consumers. The hearing also addressed the possible enactment of federal legislation that would create a new Consumer Finance Protection Agency.
Richard Neiman, superintendent of the NYS Banking Department, and Michael Smith, CEO of the NYS Bankers Association, also testified at the hearing.
During his testimony, Mellin emphasized the unique and important role New York credit unions play in the financial services marketplaceand their unique ability to help New Yorkers recover from the current economic challenges.
He also reminded the committee that credit unions' cooperative, not-for-profit structure and mission of creating financial independence for their members prevented them from contributing to last year's financial crisis.
"Credit unions take great pride in truly knowing their members," said Mellin. "As a result, our mortgages are not packaged and overseen by an institution in a far off state. In fact, many of our institutions hold substantial mortgage portfolios. It is not a coincidence that credit unions have been lauded as the example of what is right with the financial services industry throughout this downturn in the economy."
When asked about the future of the dual chartering system, Mellin stated that "the dual regime of state and federal regulators, as well as charter choice, allows for competition, diversity and innovation, elements that remain critical for our state's consumers and financial institutions."
Mellin also referenced President Obama's March 2009 recommendations to Congress (Financial Regulatory Reform: A New Foundation) and encouraged the Committee to reaffirm the President's recommendations. In the report, President Obama recognized the value of credit unions' dual chartering system and recommended that state supervision, dual chartering and an independent credit union regulator be maintained.
In closing, Mellin stated that "while there is no question that enhancing consumer protection is a laudable goal given the economic climate, it must be accomplished in a manner that builds on existing regulatory success without undue regulatory burden for financial institutions."
After his testimony, Mellin said, "The hearing was an excellent opportunity to again highlight the credit union difference and how we are helping millions of New Yorkers in communities across our great state."
The Credit Union Association of New York has served as the trade association for the state's credit unions for 92 years. It is the fourth largest association in the country. New York credit unions have assets of more than $48 billion and 4.3 million members. To learn more about the Association, visit www.cuany.org.
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Editor's note: A copy of Mellin's full testimony is available upon request.