Below are excerpts from a letter dated Sept. 30 written by Edward Yingling, president/CEO of the American Bankers Association, to NCUA Chairman Michael Fryzel.
It was very disturbing to learn that Resource One Credit Union in Texas is running an advertisement "What is safer than money in the bank?" which unwisely raises fears about the stability of the banking system and the Federal Deposit Insurance Corp.
Beyond being untrue, such an ad can have only one result: without boosting confidence in credit unions, it will serve to undermine confident in all insured depository institutions.
I note that, according to press reports, the FDIC and the Texas Credit Union Commissioner took action recently to have removed a similar inflammatory ad by the Texas Dow Employees Credit Union. This inflammatory ad by Resource One Credit Union is little more than playing with matches in a room full of gunpowder. It should be retracted immediately before more harm is done, and all credit unions should be advised not to run such ads.
Because of the impact that this kind of public agitation can have on the liquidity of insured institutions, I urge you to take action right away to stop Resource One Credit Union from using the advertisement and to discourage any such use by other credit unions. We believe bank regulators should similarly discourage and take action to stop any such inappropriate advertisements by banks.