Banking lobbyists had strong words for the latest credit unionindustry efforts to combine member business lending legislation with anextension of the Transaction Account Guarantee, legislation at the top ofbankers' wish lists.

In a Nov. 23 article in Politico, Independent CommunityBankers of America Executive Vice President Paul Merski said S.2231, which would increase the memberbusiness lending cap to 27.5% of assets, doesn't have enough votesto pass in the Senate. So, credit unions are “trying to attach itlike a barnacle” to the TAG bill, Merski said, which he called non-controversial.

Both Merski and American Bankers Association lobbyist JamesBallentine said their organizations would oppose any attempt tocombine credit union and bank legislation as suggested by creditunion trade associations. Ballentine told Credit UnionTimes in July that he opposed such a package.

Merski also called a Nov. 19 letter from NAFCU President/CEOFred Becker to senators supporting the bill “obscene” and calledcredit unions “the skunk at a garden party.”

In response to the article, Becker said he doesn't know why thebank lobbyists had such strong words in opposition of the packagedeal, because they have worked with credit unions in the past topass legislation; a recent example is debit card interchange.

“They don't hesitate to come to us when they need help,” Beckersaid.

CUNA Senior Vice President of Legislative Affairs Ryan Donovansaid he wasn't surprised by the banking lobby's opposition to apackage deal. “I don't think any of us expect them to support MBL,”he said.

Further, Donovan said, “The Senate doesn't need the bankers'blessings. No one asks for their permission to do something forsmall business.”

Ballentine said in the article the ABA will have members hikingthe hill this week in an attempt to counter messaging from creditunions and small business owners that will be visiting legislatorsas part of a formal CUNA Hike the Hill event.

CUNA Senior Vice President of Political Affairs Richard Gosesaid the credit union MBL Hike the Hill event was planned well inadvance of the bank counter offensive. He said the banking industryhas a lot of issues before Congress, not just fighting memberbusiness lending by credit unions.

“But, if they want to argue about small business, the economyand job growth, that's their prerogative,” he said.