Nussle: Banks hurt themselves with knee-jerk reactions vs. credit unions
You know reason has left the house when banking trade associations oppose a state relief measure, one which would certainly help some of their members, solely to block credit unions from having the same relief. Jim Nussle said Friday that it is “hard to believe” bankers in New York would shoot their members in the foot by giving into a “knee-jerk reaction” against credit unions.
An article in the April 8 issue of American Banker reported that banking groups are opposing a state Senate bill that would lift a prohibition on municipal deposits at thrifts–a reform that would benefit some of their members. The article stated, “Their opposition stems from a provision in the bill that would also let credit unions accept public funds.”
Nussle, president/CEO of CUNA, said, “It’s unfortunate that banks put protecting themselves from competition from not-for-profit, cooperative financial institutions ahead of increasing alternatives to municipalities and households.” In general, municipalities look for safe and sound investment alternatives for such things as tax revenues or budget allocations until those funds are used to cover expenditures.
Credit unions are authorized under federal rules to accept public deposits. Twenty-five states already include credit unions on the list of acceptable depositories, thanks in large part to advocacy efforts by CUNA, state credit union associations, and credit unions themselves.continue reading »