SAN BERNARDINO, Calif.-The president of Arrowhead CU said he is pleased with the results of conversations he had with Congressional leaders regarding credit unions being excluded from early distribution of government assistance to financial institutions.
Larry Sharp went to Washington to discuss the implementation of the Troubled Assets Relief Program, or TARP. He told Credit Union Journal the feedback was immediate and positive. Sharp was most pleased by the response of Joe Baca (D-CA), a member of the House Financial Services Committee. Baca represents California's 43rd District in the House of Representatives.
"I think our reception was really good," Sharp said. "The group that we met with, including Joe Baca of the Financial Services Committee and all four Congressmen from our region, went very well. We were trying to reinforce the fact credit unions were not included in distribution of TARP funds when they were authorized by the bill."
Sharp said he told members of Congress that initially credit unions believed they did not need or want TARP funds.
"Then we eventually realized Congress was putting billions of dollars into our competitors. When things turn around, those competitors will still have those billions. That's the message we were trying to deliver, along with the fact some credit unions are being hit hard," he continued. "Our region, the Inland Empire, has unemployment over 10% and some of the highest foreclosure rates in the country. There also are credit unions struggling in Florida and Ohio."
Sharp noted that Rep. Baca was successful in getting verbiage credit unions wanted into HR 384, the TARP bill.
"Baca testified he was disappointed Treasury Secretary [Henry] Paulson implemented the first half of the rescue plan without including credit unions," Sharp reported.
The bill next will go forward to the Rules Committee, and possibly other committees, before it goes to the floor, Sharp said. "NAFCU and CUNA are on board with this, but I don't yet know about NCUA. From our standpoint, we are very proud of the support we have been able to get, especially Joe Baca's support of credit unions. He is our local congressman, and he's seen fit to help us out and take the lead on this."
