ICBA Emits Bankrupt Howls After Low-Income CU Move
As drought-stricken businesses across the country are in dire need of assistance, the Obama administration asked the regulators to find ways to provide aid. The NCUA responded by informing 1,003 credit unions of their eligibility for low-income designation and allowing them to opt-in rather than slogging through paperwork.
The significance is that LICUs are not bound to the 12.25% of assets cap on member business lending.
The administration may very well be exploiting the drought conditions. Necessity is the only thing that gets Washington moving. However, no rationalization is taking place. These credit unions were already eligible for LICU status, and the NCUA has not “unilaterally acted to designate credit unions” as LICUs. The credit unions have to opt-in and the program is at the behest of the president of the United States, not to mention to the benefit of hard-working, tax-paying Americans. From the ICBA’s point of view, shouldn’t the taxpayers be taking advantage of their tax dollars hard at work in tax-exempt credit unions?
“Highly controversial legislation to expand business-lending authority has failed to advance in Congress for a decade, but the credit union regulator has thumbed its nose at the legislative branch in favor of its own aggressive actions to dramatically expand the tax-exempt credit unions’ powers.”