Readers React: A Democratic congressman defends his vote for lighter regulation of credit unions and local banks
To he editor: David Lazarus critically cites my vote for the Economic Growth, Regulatory Relief and Consumer Protection Act in his column, “Amid high fees and record profits, banks are desperate for ‘much-needed regulatory relief.’”
It is important to look at the health of our nation’s economy. After the worst financial crisis since the Great Depression, the Dodd-Frank financial reform law was very necessary. But as in any large piece of legislation, there are unintended consequences — in this case, for credit unions and small community banks.
Credit unions are not-for-profit. Their purpose is to serve people by reinvesting “profits” back into their communities. Although they should be regulated, they should not be regulated in the same manner as big banks. Those regulations become very costly and do not allow the credit unions to serve their communities effectively.
The people who make up the low-income communities that I represent need strong credit unions and local banks to access capital for buying homes or investing in their businesses. I voted for my communities to be able to achieve the American dream.
Rep. Lou Correa (D-Santa Ana)
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