ABA: CUs Should Be Forced To Become Banks
The American Bankers' Association has suggested some credit unions should be forced to become banks.
"As an intermediate step, bank like credit unions could be required to become tax-paying entities by converting to a mutual thrift charter," ABA CEO Edward Yingling wrote in a Sept. 2 letter to the Presidential Commission on Fiscal Responsibility and Reform.
"The process of conversion should be simplified and encouraged. Bank like credit unions that refuse to convert to a mutual savings bank charter should be forced to return to their core charter, thereby minimizing the tax expenditure and refocusing on the purposes for which their tax advantages were given," he added.