COMMENT BY CUNA PRESIDENT AND CEO DAN MICA ON RECORD PROFITS POSTED BY BANKING INDUSTRY IN 2Q ‘06

August 24, 2006

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

“This is the fifth time in the last six quarters that industry earnings have set a new record.” So states a press release from the Federal Deposit Insurance Corp. announcing – yet again – “record profits” in the banking industry. What remains paradoxical to us in the credit union movement is that an industry which posts record, quarterly net income of $38.1 billion for the second quarter of 2006 (surpassing the previous quarterly earnings record of $36.9 billion set in the first quarter) could be taken seriously by anyone when bankers carp about “rapid growth” of credit unions, or “aggressive business lending” by credit unions. That is, unless the banking industry is really saying that these profits are not “record enough,” and credit unions stand in the way of them earning even greater amounts. That would be a serious statement.

With its network of affiliated state credit union leagues, Credit Union National Association serves more than 90 percent of America's 9,000 credit unions, which are owned by more than 87 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information, visit www.cuna.org.

Copyright © 2008 - Credit Union National Association, Inc.