Credit unions have a long and rich heritage of serving astrusted financial intermediaries for Main Street America. But theoverwhelming burden of broad-stroke financial regulations and theirattendant compliance costs have severely threatened credit unions'ability to do what they do best, driving economic growth andstability in their local communities.

America's policy makers seem unaware of the adverse relationshipbetween the policies they have created and the economic vitalitythat credit unions bring to their communities. In an attempt tode-risk the banking industry, stabilize the economy, create jobsand protect the consumer, our post-crisis policies have underminedall of these areas while creating a growing disconnect between WallStreet excess and Main Street responsibility.

It's a simple equation: 70% of U.S. economy is consumerspending, which is strongly correlated with jobs and employment;65% of new jobs are created by entrepreneurs and small business;and 60% of the loans to small businesses come from Main Streetbanks and credit unions. Main Street institutions alsodisproportionately provide loans for houses, autos, education andbasic credit that support the national economy.

But today, the community-based financial institutions that hadlittle to do with the subprime crisis–who entered the crisis betteroff, with higher capital, lower charge-offs and lower default ratesthan Wall Street banks–exited worse off because of sweepingpolicies that reduced their income and raised their costs, placingthe viability of many credit unions in jeopardy.

Policy makers seem oblivious to the disadvantages credit unionsface in complying with the demanding regulations introduced sincethe financial crisis. Historically, the cost of regulatorycompliance as a share of operating expenses is two-and-a-half timesgreater for small financial institutions than for large ones.Additionally, while large banks have extensive access to capitaland numerous sources of income to cover increased compliance costs,credit unions have limited access to capital and considerably fewersources of income, as they focus on the basic needs of theircommunities.

It is no surprise that credit unions are under enormous pressuredespite exceptional satisfaction rates and membership growth. Forcredit unions, spending on regulatory compliance comes at theexpense of channeling savings back to member-owners and providingloans to help create and grow small businesses. It also divertstime and attention from serving members, which is what creditunions are designed to do. By raising the cost of compliance forcredit unions, policy makers are destroying one of our communities'greatest assets and stifling economic growth.

Entrepreneurs, small businesses, and the community-basedfinancial institutions that support them are the foundation of theshared economic and social ambitions we call the American Dream.But recent policies–and their costs–are rapidly eroding this dream.It isn't just affecting credit unions, either. Consider that itcosts small businesses with 20 or fewer employees $2,830 more on aper employee basis than firms with 500 or more employees to complywith today's business regulations.

To preserve the unique role that credit unions play insupporting the individuals and small businesses in theircommunities, policy makers must be made aware of the unintendedconsequences of their regulations and the harm they are inflictingon the national economy. We must take our cause to America'sleaders, speaking in a single voice that Washington cannot ignore.To this end, I have started a movement and petition to buildawareness and strengthen support for our Main Street institutionsat SavingTheAmericanDream.org. I ask everyone to join the movementand sign the petition, so we can show Congress and the president weare aware of the legislative threats to our Main Street businessesand community financial institutions and will work to preventfurther economic derailment.

In the meantime, credit unions must do more to help themselvesand reduce costs in other areas to offset the costs of aggressiveregulation. One way to reduce costs is by collaborating with othercredit unions in areas that don't differentiate you. Collaborationis a proven strategy for creating efficiencies through sharedresources and increased purchasing power. What's more, it givescommunity-based financial intuitions the advantages of scale andflexibility that larger banks enjoy. By collaborating in areas thatare non-differentiating, credit unions can redirect resources toareas where they are unique, including supporting the credit needsof their communities with quality member service.

Another way to become more effective at serving members whiledriving down operational costs is by upgrading technology. Newertechnology is essential to meet the needs of consumers and smallbusinesses who expect more varied services and delivery channels.Technology has become ubiquitous for most people today, yet many inthe credit union industry are trying to meet digital-age needsusing technology platforms that were developed 30 or 40 years ago.These systems are not only ill-equipped to deliver the servicesmembers demand, but are costly and difficult to maintain.

Taking these steps will allow credit unions to remain focused onserving their members through the undeniable traits credit unionsare known for: service, trust and community affinity. A lesspunitive regulatory environment, a greater commitment tocollaboration, and the technology to support more powerful memberrelationships are what our industry needs to overcome regulatorycompliance burdens and continue fulfilling our role as trustedfinancial intermediaries to Main Street America.