Bankers' Attacks: The Fight is On!

Banking industry attacks are the major threat confronting CUNA, state leagues and the credit union movement. In 2003 the banking lobby was quick to exploit state budget deficits and will continue to do so this year both at the state and federal level. This is a carefully coordinated anti-credit union campaign. Taking a page from the CUNA playbook, the bankers' lobbying strategy now features a stronger grassroots component and coordinated actions by its state trade associations. Consider these developments:

• To date 11 states are on "high alert" status expecting more attempts to the bankers to propose new taxes on credit union members, limits on growth or other restrictions.
• The American Bankers Association this year launched "Operation Credit Union," sending anti-credit union "tool kits" to every FDIC-insured bank with instructions to urge their state and federal legislators to tax credit unions.
• After Rep. Bill Thomas (R-CA), chairman of the powerful House Ways and Means Committee, publicly expressed interest in exploring whether credit unions' tax status is still justified, 51 state banking trade association CEOs quickly followed up with letters urging him to hold a hearing.
• The America's Community Bankers trade group also urged its S&L and savings bank members to write similar letters to Thomas calling for taxation of credit unions.
• The ABA is conducting focus groups with consumers and state legislators to hone its anti-credit union message. Most potent with legislators: If a credit union acts like a bank, it should be taxed like a bank.
• ABA's has established a Credit Union Coordinating Committee's with a "five-pronged" strategy: provide assistance to states; generate banker involvement; develop a communications/education strategy; monitor the National Credit Union Administration; pass legislation to "level the playing field" and derail any pro-CU legislation.
• The ABA has ranked taxing credit unions as its number-one priority— even ahead of combating terrorism!

The banking lobby continues to employ a "divide and conquer" strategy that seeks to split the credit union movement by size, charter type or however it can. The banks cannot be allowed to prevail. And they won't if credit unions put up a strong, united front that leverages our strengths and advantages. But CUNA and the leagues cannot do it without your help and involvement. See the next three pages of this web site for what we're doing, actions you can take, and tools you can use.

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