SAN BERNARDINO, Calif. -- As his own credit union is at last seeing small signs of recovery, the president/CEO of the $1 billion Arrowhead CU vowed Friday to continue being "a vocal advocate" before Congress to channel TARP funds into needy CUs.
"There are states like mine as well as Florida, Arizona and Nevada that have been hit very hard by this recession and it is simply maddening and irritating that credit unions are treated so very differently from banks considering the vital economic role we play," said Larry Sharp, who earlier this month in a CUNA panel met with Congressional and Treasury leaders to complain about restricted bailout funds under the Troubled Asset Relief Program.
Sharp, who expressed gratitude that CEOs from other southern California and Nevada CUs joined him this week in making new TARP appeals to members of the House Financial Services Committee, said the economic distress in his area remains dire making it all the more urgent that lawmakers recognize the need to help CUs, excluded from TARP.
As for Arrowhead, which two weeks ago said it was closing four branches, slashing operating expenses by 10% and freezing or cutting salaries after a $25 million year-end loss, Sharp said there are improvements in the housing sector already evident in California's so-called Inland Empire. "We're seeing flattening of the housing market and an increase in sales even if some of them are foreclosure properties," said Sharp.
Regarding TARP, the San Bernardino CEO said he was particularly pleased that his own Congressman, Rep. Joe Baca (D-CA), introduced a TARP amendment this week to provide a limited form of alternative capital enabling CUs to participate. Still, "I'm mad as hell that Paulson and the Treasury decided to fund our competitors and leave us out in the cold," said Sharp.
