John McKechnie, a credit union policy expert and former NCUA insider, shares crucial insights about the looming regulatory shifts in Washington. He discusses the potential consolidation of regulatory agencies like the NCUA into a bank-dominated framework, raising alarms about the safety of credit unions. McKechnie also delves into the risks of losing tax exemptions, highlighting tensions between banks and ‘mega’ credit unions. Advocating for proactive measures, he emphasizes the importance of member engagement and advocacy to navigate these challenges.
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insights INSIGHT
Credit Unions at a Crossroads
The credit union (CU) industry faces uncertainty regarding regulatory changes in Washington, D.C.
Potential outcomes of regulatory consolidation are largely negative for CUs.
insights INSIGHT
NCUA's Low Profile: A Risk
NCUA's lower profile compared to other banking regulators may lead to its oversight in regulatory consolidation discussions.
This poses a risk as CUs could be inadvertently swept into unfavorable regulatory structures.
insights INSIGHT
Increased Regulatory Burden
Credit unions could face increased regulatory burden if NCUA merges with a bank-centric regulator.
This includes a potential 35% increase in exam hours, posing challenges for credit unions.
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Episode Title: "Credit Unions at a Crossroads: Regulator Consolidation and the Tax Threat"
With Flying Colors Podcast | Episode [Number] | Released February [XX], 2025
Host: Mark Treichel Guest: John McKechnie, John Ney LLC, Credit Union Policy Expert
Overview: In this timely episode, recorded just ahead of the 2025 Governmental Affairs Conference (GAC), Mark Treichel sits down with John McKechnie, a seasoned credit union advocate and former NCUA insider, to unpack the seismic shifts brewing in Washington, D.C. With the Trump administration signaling a potential overhaul of financial regulators and whispers of taxing credit unions, the stakes couldn’t be higher. Will NCUA get swept into a bank-dominated regulatory merger? Could the credit union tax exemption be on the chopping block? John and Mark dive into the uncertainty, the risks, and what it all means for the credit union movement.
Key Discussion Points:
Regulatory Consolidation Buzz: The Wall Street Journal and Bloomberg report on merging FDIC and OCC into Treasury—what does this mean for NCUA and credit unions? John shares insights from Capitol Hill, including a revealing chat with Senator Tim Scott’s staff.
The Share Insurance Fund Risk: How a consolidated regulator could swallow the credit union-backed fund into a bank-centric FDIC system.
Taxation Tensions: Banks push to tax “mega” credit unions—are we facing a divide-and-conquer strategy? John breaks down the political and economic arguments credit unions must wield.
Exam Burden Reality: NCUA’s lighter touch vs. bank regulators—could credit unions face 35% more scrutiny under a merged system?
GAC Game Plan: Why this year’s hill visits might be the most critical yet, and how credit union advocates can make their voices heard.
CFPB’s Future: A leaner, less aggressive CFPB under Trump—good news or a distraction from bigger threats?
Notable Quotes:
“The deck is being reshuffled right now, and I think credit unions should be concerned.” – John McKechnie
“If you eliminate the credit union tax exemption, you’re raising taxes on 220,000 of your constituents.” – John McKechnie
“This GAC could be as important as any visit to D.C. the movement has ever had.” – Mark Treichel
Why Listen? With uncertainty as the word of the day, this episode is your insider’s guide to the regulatory and legislative battles that could redefine credit unions. Whether you’re flying into GAC or tracking policy from afar, Mark and John deliver the wisdom you need to understand the stakes—and what’s next.
Credit Union Exam Solutions Presents With Flying Colors