X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-Federal Deposit Insurance Corporation Chairman Don Powell reiterated his belief that credit unions should be taxed during a speech to America’s Community Bankers Government Affairs Conference. He briefly showcased an advertisement ACB placed in The Hill newspaper and elsewhere, featuring a bright yellow rubber ducky with the usual “quacks like a duck” motto regarding credit unions’ tax exemption. “It’s no secret where I stand on that…they should be paying taxes,” Powell said. He added that bankers are not scared of fair competition, but there must be a level playing field. He also stated that if credit unions are going to get into the business of business lending, they better have a keen understanding of it and have safe and sound underwriting practices. In response to a question from the audience about credit unions getting more involved in business lending, Powell said, “Credit unions are doing more and more of that…I have mixed emotions about it.” He admitted that when he was a banker, he used to send some customers down the street to the credit union for small business loans. During his remarks, the chairman also recommended that the banking industry regain its enthusiasm for deposit insurance reform. “Deposit insurance reform. We’ve lost our passion for that,” he observed. “I’ve learned in Washington D.C., in my short time here, we only react in crisis.” Though FDIC funding is not an issue now, problems with the system still need to be fixed. While coverage is important, he said, some changes are crucial including the merging of the Bank and Savings Association Insurance Funds, the rate cliff, and allowing for risk credits. The issue of raising insurance coverage has been a sticking point with the bill in the legislative process. Powell suggested that the attendees should raise their concerns about deposit insurance reform with their representatives on Capitol Hill. Powell also commended the banking industry on their record profits earning $120 billion in 2003. “If you’re not making money in the banking business in 2003, something’s wrong,” he said. The good times are also the time to clean house, he suggested. Eliminate non-performing directors and personnel, Powell said. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.