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1998 Ron Paul Chapter 32

On Regulating Credit Unions

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1 April 1998


Mr. LEACH. Mr. Speaker, I yield 2 minutes to our distinguished colleague, the gentleman from Texas (Mr. PAUL).

(Mr. PAUL asked and was given permission to revise and extend his remarks.)

1998 Ron Paul 32:1
Mr. PAUL. Mr. Speaker, I thank the chairman for yielding me the time. I am an original cosponsor of 1151. But the original bill never came to the committee. It was quickly substituted with another bill, which I think is seriously weakened from the original bill that we had. So I would like to let all those 207 Members who are cosponsors that are not voting on the bill that they signed their name onto know that there are two major changes that have occurred.

1998 Ron Paul 32:2
One is that the multiple common-bond position of 1151 has been removed. Now it is restrictive. And the other thing is there has been a lot of regulations added, and I think that we should consider long-term economic consequences and political consequences of opening up the door to regulations and also what it means down the road as far as insurance goes.

1998 Ron Paul 32:3
For instance, it was bragged upon, the bill was bragged upon because the regulations of safety and soundness was good. We have had a lot of regulation, for safety and soundness for banks and savings and loan, and yet the FDIC and FSLIC had to be bailed out. The insurance deposit for credit unions was started by private money, no government subsidies, and has never been bailed out. So now we are going to overlook the credit unions and make sure they are safer and sound.

1998 Ron Paul 32:4
I think it is the wrong direction that we are going. I think the whole notion that we are going to have the Community Reinvestment Act applied to the credit unions is going in the wrong direction. This is a form of credit allocation and, actually, long term, will weaken the credit unions.

1998 Ron Paul 32:5
I would like to speak up for the credit unions and say this bill has been weakened to such a degree that they have opened up the doors, and down the road they are going to be treated like the banks, and down the road they will probably receive the taxation that banks have.

1998 Ron Paul 32:6
I resent the idea that the competitors and the small banks, who do not like the competition of the credit unions, they say, well, let us tax them and regulate them. So, in a way, we have accommodated the banks by adding the regulations onto the credit unions.

1998 Ron Paul 32:7
I do not think this is going in the right direction, and we should seriously consider a no vote on this legislation.
Notes:

1998 Ron Paul 32:1 Mr. Speaker, I thank the chairman for yielding me the time. Here, Ron Paul thanks The Honorable James A. Leach of Iowa.

1998 Ron Paul 32:3 Ungrammatical the bill was bragged upon because the regulations of safety and soundness was good. probably should be either the bill was bragged upon because the regulation of safety and soundness was good. or the bill was bragged upon because the regulations of safety and soundness were good.

1998 Ron Paul 32:3 savings and loan probable should be plural, savings and loans or savings and load associations.

1998 Ron Paul 32:3 The insurance deposit probably should be The deposit insurance.

1998 Ron Paul 32:3 So now we are going to overlook the credit unions and make sure they are safer and sound. perhaps should be So now we are going to oversee the credit unions and make sure they are safer and sound. or perhaps So now we are going to look over the credit unions and make sure they are safer and sound.

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