Anti-CU Fed Candidate Gets Free Pass from CU Lobby

WASHINGTON – Both CUNA and NAFCU said last week they have no plans to oppose would-be Federal Reserve Governor Elizabeth Duke, who has traveled the country the past few years lobbying for repeal of the credit union tax exemption and against credit union legislation.“We look forward to working with Ms. Duke on credit union issues should she be confirmed,” said Fred Becker, president of NAFCU. “Our experience has been—as was clearly the case with Gov. [Mark] Olson—that once a nominee assumes the responsibility of a federal regulator, he or she puts aside industry politics and does what’s best for the entire financial services industry and the American consumer. We have no indications that Ms. Duke would take any different approach.” CUNA also said it would not oppose the anti-credit union candidate’s nomination to the Fed. Duke, former chairman of the American Bankers Association and now chief operating officer at TownBank in Virginia, testified several times before Congress against credit union efforts to ease member business loan, field of membership and CUSO restrictions, and spearheaded the ABA’s ‘Operation Credit Unions’ aimed at repeal of the tax exemption. As ABA Chair, Duke wrote every bank and savings association leader in the country to encourage them to join a letter-writing campaign against CURIA, the CU Regulatory Improvements Act. As one of seven Fed Governors, Duke could be called upon by Congress to give her opinion on credit union legislation, like the CU Regulatory Improvements Act, or even the tax exemption, if it reaches a debate on Capitol Hill. Duke’s nomination to the Fed, along with that of Larry Klane, president of global financial services at Capital One Financial Corp., must still be approved by the Senate.