The bank vs. credit union bickering on Capitol Hill has landed both parties on theCongressional naughty list, and could result in both partiesleaving Washington this year with nothing but lumps of coal intheir legislative stockings.

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First, the banking lobby saw its Transaction Account Guaranteelegislation fall out of favor last week.

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Then, this week the other shoe dropped on credit unions: CUNAconfirmed that it told leaders of its affiliated leagues Tuesdaythat S. 2231, the bill that would raise the member business lendingcap, doesn't have enough votes to pass on the Senate floor. That'san about face from CUNA's former position that S. 2231 does have the 60 votes required to pass the Senate, anassertion the trade association has made for months and as recentlyas Nov. 28 when 500 industry supporters gathered in Washington tohikeCapitol Hill to push for a vote during the lame ducksession.

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CUNA spokesman Pat Keefe told Credit Union Times onWednesday that while MBL legislation could still be included in alegislation package, “as a standalone bill it probably wouldn'tmake the grade.”

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What caused the turn of fortune? Keefe said no members ofCongress want to be put in a position to vote against the bankinglobby, the same reason the trade had given to explain the lack of avote prior to the November elections, despite a promise from SenateMajority Leader Harry Reid (D-Nev.) nearly one year ago that itwould. Not only would the bill likely fail to win enough votes inthe Senate, Keefe also said contacts on the House side have saidthey would prefer to see the bill as part of a package.

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Tired of playing nice with bankers and reaching across theprofit aisle in an attempt to craft an MBL-TAG package, CUNA rescinded its support of TAG late Mondayand fired off a letter to Reid and Senate Minority Leader MitchMcConnell (R-Ky.) communicating that opposition.

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In the letter, CUNA President/CEO Bill Cheney wrote thatCongress should allow TAG to expire because it is no longernecessary, it is risky and it has not proven to enhance bankbusiness lending. Cheney countered that if Congress wants toenhance and expand access to credit for small businesses, it shouldpursue raising the MBL cap instead.

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“We felt from what we were hearing on the Hill, the best pathfor us is to let (bankers) know we're not fooling around,” Keefesaid of the sharp change in position.

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So, if CUNA no longer fancies TAG, what other bills areavailable to tango on the MBL dance card? That's a good question,Keefe said.

While he said TAG is “not quite overyet,” the CUNA spokesman also hinted that without a legislativepartner, MBL may be dead in the water this year. If S. 2231 were to lose on the Senate floor, itwould prevent the bill from being introduced again in the next fewyears, Keefe said.