Trade group to map strategy for countering banks' attacks.

WASHINGTON -- The Credit Union National Association will hammer out a strategy for a "counterattack" against banks that have sued credit unions over expanded charters.

A meeting of 28 members of the trade group's governmental affairs committee will be held in Washington on Nov. 11, said Jeanne-Marie Murphy, an association lobbyist.

"The major purpose of this meeting is to decide the specifics of what we'll do in response to bankers' attacks," she said.

Meanwhile, the American Bankers Association, which has been helping banks in lawsuits attacking the membership charters of credit unions and has challenged the tax-free status of credit unions, is waiting to see whether CUNA's declaration of war is for real or just a tactic to whip up its members.

"We're not going to stoke the flames right now," said Chris Rieck, a spokesman for the ABA. "They have a membership they need to appease. But if it goes beyond that, you can bet we'll respond."

Effects on Industry Relationship Unclear

Officials on both sides are uncertain how a credit union offensive will affect cooperation between the two industries. Many credit unions go to banks for such services as check and credit card processing.

Credit unions also have $145 million of surplus funds invested in certificates of deposit and federal funds held by banks, and the corporate credit unions also invest in banks products.

"A lot of banks make a lot of money off of credit unions," Ms. Murphy said. "Some banks and credit unions have a nice symbiotic relationship. That could change in an all-out war."

The industries also cooperate in lobbying for some legislation on Capitol Hill, such as bankruptcy reform and regulatory relief

A feud "sure wouldn't help" this cooperation, said Mr. Rieck.

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