Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Cheney tells Senate leaders Banks wrong on CU biz lending
WASHINGTON (7/9/10)--In a Thursday letter to Senate leaders Harry Reid (D-Nev.) and Mitch McConnell (R-Ky.), Credit Union National Association (CUNA) President/CEO Bill Cheney noted the "stunning hypocrisy" of the banking industry in threatening to "hold hostage" small business lending legislation because it contains a provision to increase the member business lending cap for credit unions. The Independent Community Bankers of America (ICBA) has publicly stated that it would oppose legislation that would help community banks provide an extra $30 billion in loans to small businesses through a government-backed lending fund if that legislation included an amendment that would lift the member business lending cap for credit unions. Cheney decried the ICBA’s “all or nothing” approach, which he emphasized goes against doing what is best for the country’s small businesses. "We believe the focus of the small business legislation should remain on one thing only: ‘What is best for the struggling small businesses across America?’ That is why senators and credit unions support the Udall Amendment to the small business bill," Cheney wrote. That amendment, which was introduced by Sen. Mark Udall (D-Colo.) last month, would increase the current MBL cap to 27.5% of assets, creating an estimated $10 billion in new small business funding and over 108,000 new jobs at no cost to taxpayers. "Unfortunately, the ICBA is not focusing on what is best for America’s small businesses," Cheney wrote. Cheney said that by threatening to “hold hostage” the small business lending fund, the ICBA is attempting to “prevent credit unions from providing more credit to small businesses” while also giving up a “significant opportunity to increase community banks’ own lending.” Overall, the ICBA’s opposition is “not in the best interests of America’s small businesses” and does small businesses “a grave disservice.” While the ICBA and others have challenged lifting the MBL cap, Cheney added that “the record reflects that credit unions are experienced in business lending, have a better pay-off record than banks, and need the Udall Amendment to continue their commitment to members with small business needs. For the full letter, use the resource link.


RSS print
News Now LiveWire
The Hill reports House Republicans plan to delay Aug. recess to stay in D.C. until they have enough votes to pass bill on border crisis.
8 hours ago
The FHLBs of Des Moines and Seattle announce they have entered into an exclusivity arrangement regarding potential merger of the 2 entities.
8 hours ago
SunCorp and @AlloyaCorp have announced their intent to merge.
11 hours ago
.@TheNCUA bars former employee of Southwest Communities FCU,Melissa Rosing,from work at any federally insured FI. http://t.co/owtVnPxVZT
11 hours ago
Fryzel added @TheNCUA is fed. governmt, thereby will B criticized, but always tried 2 do what is right. McWatters still 2 B sworn in.2of2
13 hours ago