WASHINGTON–America’s Credit Unions said a meeting between its representatives and Treasury officials focused on the administration’s Executive Order Guaranteeing Fair Banking for All Americans, while separately it joined with state leagues in sharing concerns over the end of production of the penny.
According to the trade group, America’s Senior Vice President of Advocacy Greg Mesack and Regulatory Advocacy Senior Counsel Luke Martone sought clarity on the executive order directing Treasury to develop a comprehensive strategy to address debanking.
America’s Credit Unions said it highlighted the need for clear definitions, consistent expectations across regulators, and practical guidance that does not impede legitimate risk management or member-service functions.
‘No Ideological Debanking’
“Mesack and Martone emphasized that credit unions do not engage in politicized or ideological debanking, and that decisions about account openings or closures are based on legitimate business and regulatory considerations,” America’s Credit Unions said. “They also urged Treasury to take a coordinated and clear approach as it carries out its review under the executive order, and that any guidance developed by Treasury, NCUA, or financial regulators should be straightforward and practical, especially given the resource constraints many credit unions face.”
Sharing Their Two Cents
Separately, America’s Credit Unions, the American Association of Credit Union Leagues (AACUL), and all state leagues wrote Federal Reserve Governor Christopher Waller to share concerns raised after the U.S. ceased production on pennies last month.
“The end of penny production, shrinking inventories at Federal Reserve distribution sites, and the lack of a national rounding standard are creating uncertainty for credit unions and other financial institutions,” the organizations wrote.
The Request
America’s Credit Unions, AACUL, and leagues are requesting:
- The Federal Reserve maintains access to coin depots, provides transparent inventory updates, and prevents regional disparities as penny supplies shrink
- Clear, coordinated guidance on acceptable rounding approaches and what to do when exact change is not available
- The Federal Reserve collaborate with the NCUA and other regulators to provide timely interim guidance that promotes consistent implementation and reduces compliance uncertainty
- That Congress sets a uniform national rounding standard to prevent inconsistent state approaches. The Federal Reserve should convey to Congress why a clear nationwide framework would help credit unions and consumers. Pending legislation, including the bipartisan Common Cents Act, would accomplish this, America’s Credit Unions said.
The full letter can be found here.
