WASHINGTON-Congressional leaders last week assured credit unions during CUNA's Government Affairs Conference they would do everything they could to keep them from paying the tab for the ongoing financial crisis.
Rep. Barney Frank, the chairman of the House Financial Services Committee, lamented the fact that while credit unions were "well-behaved" during the subprime mortgage meltdown, they are feeling the effects of the broader market conditions.
"You're the good son," said the Massachusetts Democrat. But, "you are the victim of other's mistakes. You've been damaged."
Frank, who is front and center on all of the major financial bills being crafted, said he will work to see that credit unions are not adversely affected through tougher regulation and he assured that the federal tax exemption is safe.
Sen. Chris Dodd, the chairman of the Senate Banking Committee, assured GAC attendees they will be heard as Congress restructures the federal regulatory framework. "As we modernize the regulatory structure, there will be a seat at that table for America's credit unions," said Dodd.
The Connecticut Democrat praised the credit union role. "You've been successful. You've done a good job. You're strong. You're vibrant. You've been conservative in the management of your financial affairs."
Rep. Carolyn Maloney, who chairs the financial institutions subcommittee of the Financial Institutions Committee, assured attendees she supports the continued independence of NCUA, which is being considered as part of a catch-all financial services regulator. The New York Democrat also endorsed the continuation of the tax exemption.
Maloney also endorsed the bill to allow NCUA to stretch out the $5 billion premium assessment to pay for the corporate bailout over five years.
Rep. John Boehner, the House Minority Leader, said he and his Republican colleagues will work to prevent Congress from passing the mortgage cramdown bill that is opposed by the mainstream credit union lobby, CUNA and NAFCU. The bill, said the Ohio Republican, "would lead to lower liquidity in a time when we need more liquidity."
Later, Rep. Eric Cantor, a Virginia Republican, also vowed to oppose the cramdown bill, which he said, "does not make sense," and will "make it more difficult for you to provide members with credit."
Long-time congressional champion Paul Kanjorski told the crowd he will continue to work to raise the member business lending limits on credit unions. "Congress needs to act to raise the member business loan limit," said the Pennsylvania Democrat.
