WASHINGTON — Congress continued its assault on financial institutions' profitability last week with growing momentum to regulate the market for credit card interchange fees, a lucrative profit center for credit unions and banks.

If you place a frog in a kettle filled with water that is cool and pleasant, and then you gradually heat the kettle until it starts boiling, the frog will not become aware of the threat until it is too late. The frog's survival instincts are geared toward detecting sudden, not gradual changes.

Last] week, Credit Union Journal called attention to the important issue of resolving whether or not credit unions should be allowed to raise alternative capital ("Bid on Supplementary Capital Moves Forward," Sept. 28). The prohibition against alternative capital was put in place as part of the CU Membership Access Act of 1998 (CUMAA); and, currently, as the Journal rightly points out, only credit unions designated "low income" may raise it. I'm hopeful that the industry will work together to get the law changed so credit unions can issue member capital.

The book The Art of War is attributed to Sun Tzu, born during the Spring and Autumn Period of China (722-481 BC), a time of constant war in China. He became a heroic general for the king of Wu. The book presents a philosophy of war for managing conflicts and winning battles. It is accepted as a masterpiece on strategy and often referenced by generals and theorists throughout history.

Call me naive or even ignorant but I fail to see how alternative capital, as currently proposed by NAFCU, and supported by CUNA, strengthens our industry. To me it seems to perpetuate the current capital shuffling from natural person credit union to corporate CU to US Central. When a true crisis occurs, the burden is shuffled down to the natural person credit union that didn't create the crisis and are damaged irreparably.

During these troubled times, we're all for new business models that look to the future and stimulate growth. Our aging membership is of particular concern here on the homefront, as is our competitive marketing and branding efforts. And there is an endless stream of webinars, email and mail bombarding us that talks about changing our ways, at least at the individual credit union level. Nothing wrong with that so long as someone is taking the long view, marshalling forces, and leading the band.

Be honest: how many of you correctly handicapped the outcome of the member vote in Maine on converting to a mutual savings bank and then merging with a local bank?

LAS VEGAS – Cumorah CU, saddled with growing losses, said its long-time CEO Tony Mook has resigned and been replaced by Paul Simons, a work-out specialist.

WASHINGTON – NAFCU told CUNA last night it could not support CUNA’s latest proposal on alternative capital because, among other things, CUNA wants to allow credit unions to subscribe to alternative capital in other credit unions.

WASHINGTON – NCUA Chairman Deborah Matz will join other regulators next week to testify before the Senate Banking Committee on the state of the banking industry.

WALLINGFORD, Conn.– Steep losses last year, which have continued through 2009, have caused the independent auditor for Constitution Corporate FCU to question the ongoing viability of the $1.3 billion corporate credit union.

RICHARDSON, Texas – Texans CU said tw telecom has completed the installation of a new suite of services, which includes a 34-site IP VPN, dual 20 Mbps Ethernet Internet connections, 1 Gbps data transport circuit and full voice services.

ENDICOTT, N.Y. – Visions FCU hopes to capitalize on growth in Johnson City with a new branch, the credit $2.3 billion credit union’s 25th branch.

BOSTON – Charley on the MTA won’t recognize the credit union anymore, MBTA Employees CU.

COLUMBIA, S.C. – South Carolina FCU highlighted its ‘Young & Free’ program aimed at youth with a multiple-band competition Wednesday night here called Last Band Standing.

McLEAN, Va. – Mortgage rates moved lower again this week, with the benchmark 30-year average remaining under 5% for the second week in a row, according to Freddie Mac.

NASHVILLE, Tenn. – Old Hickory CU has filed a claim in court against the estate of Steve McNair seeking $43,000 to pay off a loan on a Cadillac Escalade the football start bought for his girlfriend, who later killed him and herself.

INDIANAPOLIS – Indiana Members CU announced a corporate sponsor deal yesterday with the NBA’s Indiana Pacers.

MINNEAPOLIS – A top NCUA official told state lawmakers this week that credit unions have few of the risky holdings that are troubling banks, even as state regulators reported the number of credit unions on its "watch list" of problem institutions has risen to 21, out of a total of 94 state charters.

JACKSONVILLE, Fla. – First Data said its STAR Network has set a partnership with PayPal that allows debit cardholders in First Data's Star Network to quickly link their Star debit card to a PayPal account online.