CU CEO to Testify Before Senate on Deposit Insurance Reform

WASHINGTON–A credit union representative will be among those testifying before the Senate Committee on Banking, Housing, and Urban Affairs on Wednesday as part of  hearing titled, “Evaluating Perspectives on Deposit Insurance Reform,”

Testifying in the hearing that begins at 10 a.m. will be Peter Rice, CEO of Hanscom FCU in Massachusetts. Also testifying will be:

• Kenneth Kelly, chairman and CEO of First Independence Bank
• Bob Harrison, chairman, president and CEO of First Hawaiian Bank
• Nicholas J. Podsiadly, partner, Financial Markets Practice with Jones Day

‘First-Hand Insights’

Rice will offer  first-hand insights into the importance of strengthening deposit protections and expanding credit union lending capacity, according to the Defense Credit Union Council (DCUC). 

“Let’s not ask what small businesses can do to survive in our financial system, let’s ask what our financial system must do to ensure small businesses and the nation they sustain will endure,” Rice said in a statement. “When payroll doesn’t run because a bank took risks, Main Street doesn’t eat. And no American worker should discover their paycheck is hostage to a bank failure.”

‘Vital Issue’

Added DCUC President and CEO Anthony Hernandez in a statement, “We extend our gratitude to Sen. Elizabeth Warren for inviting Hanscom Federal Credit Union to share the credit union perspective on this vital issue, and we remain committed to advancing policies that safeguard and empower our member credit unions and the communities they serve.”

Rice was recently featured in the CU Daily for its unique WealthTrek branch which uses an escape room strategy in financial education. 

DCUC Urges Action

DCUC noted it recently urged Congress to take action on several key priorities it said would strengthen deposit protections and expand access to credit, including:

• Modernizing Deposit Insurance. “Raising coverage limits on business operating accounts to better protect payroll and vendor funds in today’s economy.”
• Ensuring Parity. “Empowering the National Credit Union Administration (NCUA) with the same tools as the FDIC to safeguard deposits, eliminating any perception that credit union deposits are ‘second class’.”
• Managing Costs Responsibly. “Supporting a phased-in approach to higher coverage limits to maintain the strength of the National Credit Union Share Insurance Fund.”
• Unlocking Small Business Lending. “Removing or easing the outdated Member Business Lending (MBL) cap, which unfairly limits credit unions’ ability to meet small business credit needs compared to banks.”
• Supporting Veteran Entrepreneurs. “Advocating for bipartisan efforts such as the Veterans Member Business Loan Act, which would exempt loans to veteran-owned small businesses from the MBL cap, unleashing new sources of financing for veteran entrepreneurs.”

DCUC in Partnership With Earnest Consulting Group

Separately, DCUC said it and  Earnest Consulting Group (ECG) have “reaffirmed their strategic partnership, furthering their shared mission to support all credit unions and the communities they serve,” the Defense Council said. “This alliance expands resources and advocacy for credit unions, providing innovative solutions, tailored products, and effective industry representation.”

According to DCUC, its president/CEO, Anthony Hernandez, and ECG President/CEO Michael Pappalardo recently met to discuss opportunities to advance the credit union movement, address key priorities, and celebrate shared achievements.

‘Honored to Partner’

“Earnest Consulting Group is honored to partner with DCUC,” said Pappalardo in a statement. “Together, we’re extending our reach, amplifying our impact, and driving meaningful change for credit unions. DCUC’s steadfast dedication to leading the industry and championing the credit union difference is inspiring, and we’re proud to stand alongside them in this important work.”

Added Hernandez in a statement, “ECG has shown unwavering support for the credit union movement and a deep appreciation for military and veteran communities. They’ve been an incredible ally these past six months, and we look forward to building on that momentum for the benefit of credit unions and their members.”