WASHINGTON – CUNA was boasting yesterday of the role credit unions played in yesterday’s defeat in the Senate of the Transaction Account Guarantee bill sought by the banks.
“Credit unions, their state associations across the country and CUNA aggressively opposed this TARP-era bailout program; its defeat is a death blow to the legislation,” said CUNA President Bill Cheney, of the print and radio ads CUNA launched over the past week portraying the bill as a bailout for the banks.
CUNA launched the campaign against the bank bill after it became clear the bankers had defeated efforts to get the credit union bill to raise the member business loan cap raised.
“This is the first time that credit unions have vigorously opposed bank-backed legislation; it won’t be the last time,” said Cheney. “We will be alert for any attempt by banks to attempt to attach this bill to some other year-end legislative package – and will oppose any such effort just as energetically as long as there is no similar treatment for credit union business lending legislation in the same measure.”
NAFCU also applauded the Senate defeat of TAG. “NAFCU thanks the Senate for stopping this TAG bill in its tracks,” said Dan Berger, chief lobbyist for NAFCU. “As we see it, the only way this legislation made sense was if it were coupled with legislation to raise the member business lending cap on credit unions and to include coverage on Interest on Lawyer’s Trust Accounts for credit unions.
Neither bill is completely buried yet, as Congress is expected to stay in its lame duck session for another two weeks, during which either measure could be attached to another bill moving toward passage.
The American Bankers Association was conceding defeat yesterday afternoon. “Although we’re disappointed with today’s outcome, America’s banks – with $1.6 trillion in capital – are prepared,” said Frank Keating, president of the ABA. “Banks already have been communicating about the possible expiration of TAG and will work with their business customers to demonstrate the safety of their deposits.”
