Wisconsin CU League News Release - 05/17/11
Coalition’s support for easier credit union-to-bank
conversions supports a narrow interest, not that of the 2.2 million
member-owners of the financial co-ops
Pewaukee, Wis. – One
way to tell a piece of proposed legislation is suspect is when
it’s introduced at the last minute, under cover of darkness, and
without notice to any of the people who will be affected by it. That is
exactly what happened with the legislation supported by the Coalition
for Credit Union Charter Options (CCUCO), an out-of-state group
dedicated to eliminating the competition that credit
unions—member-owned, not-for-profit financial
cooperatives—provide to for-profit banks.
“The group’s claim that it’s somehow better for
Wisconsin credit unions to have faster, easier path to becoming a bank
is irresponsible and misleading,” said Brett Thompson, president
and CEO of the Wisconsin Credit Union League, which represents
Wisconsin’s 220 credit unions. “This effort to
eliminate credit unions under the guise of greater operational
flexibility is being driven by the banking industry, which has been
trying for decades to legislate, regulate and litigate credit unions out
of business.”
Especially disingenuous is the group’s claim that if a credit
union becomes a bank it could make more loans, accept more deposits, and
open more branches. “Never in history have banks been in
favor of credit unions making more loans, accepting more deposits and
opening more branches,” said Thompson. “In fact,
they’ve sued credit unions and lobbied Congress and the state
legislature to keep them from doing just that. This legislation
has nothing to do with serving the public. It’s about just
the opposite—quelling competition so banks can make even more
money.”
Equally misleading is the group’s statement that credit unions
that convert would help the state by paying more in taxes. “The
annual member benefits that credit unions deliver to Wisconsin citizens far outweigh the potential tax
revenue,” Thompson emphasized.
Last year alone, credit unions returned almost $203 million dollars to
their member-owners in Wisconsin—in the form of lower
rates on loans, higher rates on deposits, and fewer and lower
fees. “This legislation is really about bankers looking for
a way to make even bigger bank profits.”
“Public policy should protect credit union members’ right to
determine the future of the financial institutions they own.
Passing legislation—secretly, without public notice, debate or
hearing—that makes it easier to turn the equity of Wisconsin’s
2.2 million credit union members into additional riches for a few bank
shareholders cannot in any way be considered in the public
interest,” Thompson added.
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