Washington People: Bank, Credit Union Advocates Exchange Friendly Jabs

The continuing battle between banks and credit unions took a humorous turn last week, as trade group officials from each camp sparred at an Exchequer Club luncheon.

Kenneth Robinson, president of the National Association of Federal Credit Unions, brought five guests from the industry. He quipped that they were sitting at different tables "so they couldn't all get hit by one grenade."

But American Bankers Association chief economist James Chessen didn't understand how Mr. Robinson could possibly feel threatened.

"Ken is a Marine, and I'm the weakest human in the world," he said. Mr. Chessen also noted that credit union executives can be an intimidating bunch.

"As individuals, you're fine, but as a crowd you scare the hell out of me," he said.

Mr. Chessen then criticized the credit union movement's interpretation of the common bond. As an example, he noted First Entertainment Federal Credit Union in Hollywood counts employees of Playboy Agencies and the Harlem Globetrotters as members.

"Do centers and centerfolds have a common bond? I don't know."

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The race is on to succeed Deval Patrick as assistant attorney general for the civil rights division.

Leading contenders include Richard Roberts, who heads the criminal section of the civil rights division; Judith Winston, general counsel at the Department of Education; and Ralph Neese, head of the Leadership Conference for Civil Rights.

But an administration official cautioned that the race is still wide open, noting that the White House has been concentrating on appointing cabinet secretaries and agency directors.

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Banks aren't doing a very good job of funding small businesses in poor areas, Hillary Rodham Clinton said last week.

The Clinton administration on Thursday unveiled a $20 million pilot program to fund three "community empowerment banks." During the press conference, the First Lady noted banks' unwillingness to lend to entrepreneurs has prevented people with good ideas from acting on them.

"A lot of great ideas die in the parking lots of banks," she reportedly said.

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Laurie S. Schaffer, a senior attorney at the Federal Reserve Board, returns for a second stint as temporary staffer at the House Banking Committee on Jan. 3.

Ms. Schaffer, who served during the last Congress as deputy general counsel, returned to the Fed in October.

She was one of the lead drafters of House Banking Committee Chairman Jim Leach's Glass-Steagall repeal bill, which died in the last session. Rep. Leach asked Ms. Schaffer to return for six months to assist his effort to revive the bill next year.

Also joining the panel as a congressional fellow is Rebecca Miller, a Federal Deposit Insurance Corp. staffer.

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