Reinvigorated Bank Attacks Perplex CUs

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A perennial issue at any credit union meeting, the attacks upon credit unions by banks, was again a point of discussion during separate meetings among credit union CEOs and volunteers prior to the start of NAFCU's annual conference here last week.

This year NAFCU members are pressing the trade group with new concerns following statements by several influential people within Washington regarding the status of the credit union tax exemption. Among those questioning the tax exemption have been members of Congress and the chairman of the FDIC.

"People want to know what's going on with the banker attacks. The banks are feeling a little more empowered than in the past due to these statements by public officials," NAFCU President Fred Becker told The Credit Union Journal after meeting with both the CEOs and volunteers. "You have an FDIC head (Donald E. Powell) saying what he thinks (that the credit union tax exemption should be revoked). That has created an interest that credit unions think is there, but which I don't."

When not discussing the bank attacks, Becker said credit unions were also wanting to hear NAFCU's position on the likelihood of the CURIA legislation passing, along with questions related to rules on secondary capital.

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