Why credit unions are responding to the wrong arguments in defense of the industry

Yesterday word got around that Ray Sanchez, who heads the Florida Banker’s Association wrote an impassioned plea in that bastion of balanced opinion called the Wall Street Journal Op Ed page, explaining why credit unions above a certain size should be taxed.

I’m not going to spend much time this morning responding to this dribble and neither should the industry. Some things speak for themselves. When a representative of an industry which benefited more than any other from tax reform less than a decade after causing the greatest economic meltdown this side of the Great Depression starts talking about the unfairness of the tax system, it has about as much credibility as Donald Trump extolling the virtues of humility or Stormy Daniel’s lawyer, Michael Avenatti criticizing lawyers who spend more time promoting themselves on T.V. than advancing their client’s interest.

Besides, there are more important arguments to which credit unions should be responding. The real threat to the long-term survival of the industry doesn’t come from self-serving banker attacks but from well-reasoned, albeit misguided, criticism typically emanating from the left-wing of the Democratic Party questioning the utility of credit unions. We will always be able to fend off banker attacks but if it becomes trendy in Manhattan to question the need for our industry then watch out.

 

continue reading »