Bankers Want To Box-In CUs
WASHINGTON - (06/23/06) -- The American Bankers Association isdrafting a proposal they hope to shop to Congress that wouldrequire credit unions to stick to their traditional business andmarkets--or else be forced to convert to banks or thrifts. Theproposal would enact strict caps on business lending, somethinglike the qualified thrift lender test required for savings andloans, according to one source familiar with the proposal. Thebankers would also like to set restrictions of FOM as part of theirbill, the source told The Credit Union Journal. The draft is stillin its initial stages but is expected to be shared to lawmakers inhopes of attracting a sponsor in the next Congress.