WASHINGTON—Credit unions aren’t the only financial institutions asking Congress for supplemental capital.
HR 1661, the Mutual Bank Capital Opportunity Act of 2015, has been introduced by Rep. Keith Rothfus (R-PA). That legislation would create a mutual capital certificate to help mutual banks, which have no stock and must raise capital through retained earnings. Under the legislation, the certificate would by statute be treated as Tier 1 capital and would provide a tool for meeting Basel II requirements.
Geoff Bacino, the former member of the NCUA board who now heads up a government relations/advocacy/strategic planning firm, is urging credit unions to give some thought to pushing for an amendment to the bill so as to also include credit unions, which have similar limitations on capital.