WASHINGTON (9/19/12)--Credit unions should be supported at the expense of big banks, a columnist in the Huffington Post said Monday.
"We need to break up big banks, which nearly brought down our economy, and instead support the local banks and credit unions that invest in the businesses and homes of our communities," wrote Sarah van Gelder, editor of Yes magazine, in the Post.
Van Gelder was writing about the five things on which this fall's presidential election should focus.
Her comments about credit unions were made under the No. 1 item: "Rebuild the economy, starting with the middle class and poor, not Wall Street and CEOs."
Placing more earning and spending power with the poor and middle class is a step needed to get the U.S economy up to speed, van Gelder wrote.
"We need small and medium-sized businesses that are rooted in their communities, not giant transnational corporations," she added. "Government should help veterans, recent graduates, and the unemployed to launch their own businesses and cooperatives, and back employees who take over companies that are threatening to close their doors."
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' member business lending (MBL) cap to 27.5% of assets from 12.25% so that more loans could be made to small businesses, considered a staple in the economy. CUNA and credit unions say that increasing credit unions' MBL cap would open up more opportunity to offer MBLs, inject $13 billion in business loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers.
To read the column, use the link.