Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Hidden River CEO asserts tax status 'warranted'
POTTSVILLE, Pa. (3/14/14)--You won't find credit unions listed on any stock exchange. That was among the ways that John H. Murga, president/CEO of $109 million-asset Hidden River CU, Pottsville, Pa., distinguished credit unions from banks in an op-ed piece that appeared in the March 12 issue of the Republican Herald.
 
"Banks...have full access to the capital markets and may sell stock or debt (bonds) in order to raise the capital they need to fund growth," Murga wrote in his commentary, "Tax exemption status warranted."
 
Credit unions are democratically controlled, not-for-profit financial institutions, Murga explained. Unlike shareholders of corporations, member share equally in the credit union. "That's why you're called a member," Murga wrote. "You own it and have a voice in how things are run, no matter how much you have on deposit. There are no customers and certainly no stockholders. As an owner, your opinion matters every time you come through the front door."
 
Capital is returned to members as owners in the form of better rates on products and services, Murga wrote. At a bank, capital and profits are owned exclusively by stockholders.
 
A credit union's board of directors is made up entirely of volunteers elected by the membership. They are leaders who serve the interests of the members, help manage the credit union and are willing to commit hundreds of hours of sincere, dedicated service without pay, Murga noted.
 
It was also banks that asked Congress for taxpayer-funded bailouts during the 2008 financial crisis. "As a movement, we paid for any credit union losses from within the system and from amongst our fellow credit unions with not one cent of taxpayer funds," Murga wrote. "Banks believed then it was the taxpayers' turn to pay their 'fair share.'"
RSS print
News Now LiveWire
Bank ATM fees continue to climb. Credit unions? Not so much. #NewsNow http://t.co/7nfcqusVuM
1 hours ago
NCUA 2day liquidated Republic Hose Employees FCU,Youngstown,Ohio, after determining the CU was insolvent w/no prospect for viable operations
1 hours ago
MO #creditunions @BankOnMo with SUV contest See #NewsNow http://t.co/dMnnADr3CO
1 hours ago
Breaking at #NewsNow: Matz to request revised RBC proposal, new comment period http://t.co/eLtYmzXRWn
18 hours ago
#NewsNow: Oct. 22 webinar will explore role of CDFI #creditunions. http://t.co/op1GV4mrYM
21 hours ago