In a new American Banker op-ed, NAFCU President and CEO Dan Berger rebuked bank lobbyists for misleading the public with their criticisms of credit union-bank mergers.
“Yet banking groups won’t make a peep about their $21 billion tax windfall they received as a result of the Tax Cuts and Jobs Act of 2017,” said Berger. “Nor will they openly acknowledge how nearly one-third of U.S. banks enjoy Subchapter S status, thereby allowing them to distribute untaxed profits directly to their shareholders and avoid paying federal taxes.”
Berger noted that in the consolidating financial services environment, “over the past two years, there have only been a handful of credit union-bank mergers, compared to nearly 400 mergers between banks. While not new, there has been much discussion leading to misinformation regarding credit union-bank mergers by the banking trade associations.”
Berger cited several reasons that bankers’ arguments are misleading, including:
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