WASHINGTON, DC (November 16, 2018) — National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger today issued the following statement in response to recent bank lobbyists efforts to mislead policy discourse regarding the Community Reinvestment Act (CRA), claiming with weak evidence that reforms should put credit unions under CRA regulation.
Despite benefitting from recent regulatory changes and maintaining a majority of the financial market share, bank lobbyists employ questionable arguments that claim their industry is a victim of an unleveled playing field. In an unusual hunt for attention, they continue to attempt to spin the dialogue against credit unions, causing unnecessary distractions from the real issues that should take precedence.
“Credit unions exist to serve the people in their communities, including millions of low- and middle-income households in need of affordable loans and safe and sound financial products. In fact, Federal Reserve data shows that bank customers have higher income and wealth than credit union members,” said Dan Berger, NAFCU President and CEO. “For credit unions, every loan made and every dollar earned is reinvested into their local community and serves their membership, whoever they may be.
“Instead of attempting to misinform lawmakers and American consumers with works of fiction, banks should concern themselves with cleaning up their own backyard. Banks have been caught red-handed refusing loans to particular consumers based solely on their zip code and socioeconomic background. Additionally, they have been subject to a seemingly endless stream of billion dollar fines — roughly $174 billion — stemming from their illegal, unscrupulous behavior that led to the 2008 financial crisis. Washington policymakers should reject bank lobbyists’ attempts to deflect attention onto financial institutions that are not the bad actors. The reforms Congress should take a long hard look at are a modernized Glass-Steagall Act and Volcker rule to reign in banks’ risky trading practices and limit the economic impact of ‘too big to fail.’”
Background
NAFCU has been on the forefront, defending credit unions against bank lobbyists efforts to hit credit unions at every turn, to include the credit union tax exemption and, as in this case, CRA. In a Credit Union Times op-ed, Berger lays out additional arguments where credit unions are prepared to help more of those who are underserved and how they continuously invest in their local communities. NAFCU’s advocacy team has also worked to get introduced a bipartisan bill by Reps. Gwen Moore (D-Wis.) and Paul Cook (R-Calif.) that would allow all credit unions to add underserved areas to their respective fields of membership. In recent testimony before the Senate Banking Committee, NCUA Chairman J. Mark McWatters openly supported this policy.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
