Looking back two years ago finds the Wall Street Journal shining a spotlight on bankers’ “creative methods” of reducing their tax burden. According to WSJ many of the largest banks created registered investment companies to avoid state taxes in 1999 and 2000. In WSJ”s review of Securities and Exchange Commission documents, a minimum of 10 major banks moved over $17 billion into these investment funds. “I don’t see how anybody can’t be struck by the irony in the bankers’ behavior as they repeatedly press the case to repeal the nonprofit credit union tax exemption on Capitol Hill while at the same time the Wall Street Journal article clearly suggests their true motivation seems to be greed,” said NAFCU SVP and General Counsel Bill Donovan. That issue also finds NCUA Chairman Dennis Dollar questioning whether credit union members understand the implications of converting to a thrift. “Demutualization of many credit unions could occur unwittingly by members who are not fully informed that they could be losing their member-ownership status in just two years if the thrift were to become a stockholder-owned bank,” said Dollar. “I support the right of credit union members to change the institution’s structure and charter however all members should be fully and completely informed through an effective disclosure process.”

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?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2023 ALM Global, LLC. All Rights Reserved.