WASHINGTON-Credit unions ran smack into the competition last week.
At the same time more than 4,000 CU representatives were in town for CUNA's GAC and pressing Congress for an increase in the member business lending cap, 1,000-plus bankers were in town at the same time urging Congress to kill any such plan (
The banks won the early victory. As Credit Union Journal was first to report, Sen. Harry Reid (D-NV) agreed not to attach language increasing the MBL cap to the JOBS Act that is expected to pass Congress. Reid, whose announcement came on the first day of GAC, indicated he will still look to bring a vote on the MBL provisions in this Congress.
Nevertheless, days later Rep. Ed Royce (R-CA), the lead co-sponsor on HR 1418, which would lift the MBL cap to 27.5% of assets, told credit unions "now is the time" to get MBL legislation passed. The bill has 123 co-sponsors in the House.
Royce urged credit unions to press their case during Hill visits and at home in individual districts and to take time to explain why credit unions are different from banks.
