WASHINGTON - Bankers called on both national parties last week to include provisions in their platforms that would strengthen the nation's banks and, among other things, to direct credit unions to focus on what they say is the credit union mission of serving the underserved.
The American Bankers Association is lobbying both the Democratic National Committee and the Republican National Committee to include in their party platforms a provision urging policy makers to "redirect credit unions to their charter mission of serving people of modest means."
The ABA has been arguing to Congress that credit unions are bound by the Federal CU Act to focus their services on serving people of modest means and telling lawmakers that credit unions have strayed from that focus in recent years, with increasing attention paid to people with higher incomes.
"Credit unions were originally conceived of as institutions to help meet the financial needs of people of modest means, and they have been granted impressive government benefits to encourage that mission," said Edward Yingling, ABA president, in a letter to the chairmen of both parties platform committees. "Today, too many credit unions have strayed from that focus."
Credit union lobbyists derided the ABA's initiative, saying that party platforms do not traditionally try to aid one interest over another. While parties seldom adhere to their platforms, the policy statements give a general sense on how they stand on important issues.
The bankers initiative comes as the two parties are gathering to officially anoint their presidential candidates, the Democrats in Denver next week, and the Republicans in St. Paul next month.
"Platforms adopted by the major political parties are supposed to be about the positive things the Republicans and Democrats want to do for our country. Yet, bankers are attempting to co-opt the process by suggesting credit unions be reined in from serving all consumers," said CUNA President Dan Mica.
‘The False Premise'
"What's more, they base this suggestion on the false premise that credit unions have strayed from their mission. What would have served the bankers, and our country, much better would be if bankers threw their support behind policies that promote financial institutions which offer reasonable rates on loans and return on savings, and fair service for consumers. But, then again, they cannot do that after all: that would be promoting credit unions," said the CUNA executive.
"It comes as no surprise that the bankers, now desperately failing at running their business, after ripping off millions of consumers with subprime loans, are trying to run ours," said Fred Becker, president of NAFCU. "Thirteen years of HMDA figures and year after year of customer surveys prove that credit unions are indeed serving all their members, especially the underserved, with reasonable rates and great commitment to member service."
The bankers are also calling on both parties to: review the effects of market value accounting; reform money laundering disclosures; strengthen charter choice and dual chartering and implement "pro-business tax polices."(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
