As National Association of Federally-Insured Credit Union members met lawmakers and their staffs this week, the Independent Community Bankers of America circulated a crib sheet on Capitol Hill designed to make the credit union officials squirm.
NAFCU held its virtual Congressional Caucus this week and attendees were urged to hold online meetings with senators, House members and their staffs. NAFCU offered to facilitate those meetings.
Ahead of those meetings, the ICBA circulated a “guide” urging lawmakers and their staff to confront credit union officials about issues that divide the banking and credit union communities. The ICBA has been running a high-profile campaign urging policymakers to “Wake Up” to the unfair advantage bankers claim credit unions have by virtue of their tax-exempt status.
In its two-page crib sheet, the ICBA raises several issues they wanted policymakers to address when they met with credit union officials, including whether:
- By purchasing community banks credit unions are “effectively weaponizing” their tax exemption. The bankers said that while such purchases were rare in the past, there were 21 such transactions last year. They urged the policymakers to ask several questions, including whether the credit union officials intended to “use your tax exemption to target and acquire a taxpaying community bank.”
- Credit unions are meeting their responsibility to serve “people of modest means.” The ICBA urged lawmakers and staff to ask credit union officials whether their financial institution is located in a low- or moderate-income area and how many of their members were low- or moderate-income people.
- Credit unions should be permitted to issue subordinated debt as an alternative type of capital.
- NCUA should have authority over third-party servicers, as has been recommended by the agency’s Inspector General, the GAO and others.