ADVISORY

Barney Frank letter to Dan Mica

April 8, 2008

FOR IMMEDIATE RELEASE
Contact: Patrick Keefe -- (202) 508-6765
pkeefe@cuna.com

The Treasury “blueprint” recommendations that would effectively turn credit unions into banks has no chance of succeeding, House Financial Services Committee Chairman Barney Frank (D-Mass.) has reiterated in a letter to CUNA President and CEO Dan Mica. In the note, Chairman Frank wrote that “this is a proposal that will go nowhere, and that given the appreciation Members of Congress have of the role that credit unions play, there is no chance of anything that would diminish that role going through.” The complete text of the note to Mica follows; a PDF of the note can be found here:

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April 3, 2008

Dear Dan,

I understand your dismay at the proposal by Secretary Paulson that would in effect abolish credit unions. I was in Africa when I received a summary of the plan, and I did not see in it this particular provision. Of course I am completely opposed to it and I can assure you that as long as I am Chair of the Committee – indeed I think as long as there are Members of Congress who know the value of credit unions on the Committee – no such proposal will have the slightest chance of succeeding.

You may have heard from the representative of CUNA who testified before the Financial Services Committee today – and very ably I should add – about the burden that the regulations involving internet gambling would impose on credit unions. I spoke out at the hearing to say what I am telling you now: this is a proposal that will go nowhere, and that given the appreciation Members of Congress have of the role that credit unions play, there is no chance of anything that would diminish that role going through. Indeed, as you know, we have worked closely with you on legislation that will to some extent expand the ability of credit unions to serve consumers, although I realize not to the extent that all credit unions would like to see. I can assure you that it is expansion and not contraction that will be on our agenda for credit unions in the future.

BARNEY FRANK

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