In the early 1970s, Daub was not long out of his service in the Army infantry in Korea and practicing law in Omaha, when he was contacted by an acquaintance about helping to turn around Standard Chemical Manufacturing Company, a 90-year-old business that sold livestock feed. He turned them down at first, but they later came back to him with a better offer and he accepted the challenge.

As part of his duties, Daub also was asked to help turn around the company's credit union, Standard Chemical Manufacturing Credit Union, which had borrowed seed money from the company and was having difficulty repaying the debt, which was further contributing to the company's financial difficulties. "They were limping along too," he recalled of the tiny 106-member credit union in 1971.

"As we turned the company around over a 10-year period, it grew from about 200 employees in 1971 to 600 employees," Daub noted. "I left them in '81 to go to Congress. So we tripled the size of the company and the credit union members grew to about 400. We actually did well and, actually, by the time I left, had paid the loan back to the company."

He continued, "A small credit union in those days but it certainly served that useful purpose of serving that identifiable field of people who needed that car loan and needed a home repair loan. It was a very good experience and I enjoyed it very much."

Daub said the experience in business and credit unions served him well in Congress, where he served in the House from 1981-89, including his last four years on the House Ways & Means Committee. In 1986, he said, there was a massive huge tax reform. "There were many, many amendments in that process that affected financial institutions and, in particular, credit unions. So I made many friends and got to know and understand the business very well," he said.

Daub went on to run for a senate seat then, but did not receive the party nomination, according to Wikipedia. He ran again in 1990, capturing the party nomination but losing in the general election.

Though he has not kept up particularly on credit union issues, he knows they are still around, serving public safety and civilian government employees, as he recalled from his days as mayor of Omaha from 1995 through 2001.

He also sees credit union representatives at events in Republican political circles. Daub is currently a partner at the law firm of Blackwell Sanders Peper Martin LLP and is still active in politics, serving on the Social Security Advisory Board from 2002-2006 and the Bush-Cheney Transition team in 2000.

Though he has an understanding of credit unions, Daub will not be a pushover either. When Credit Union Times asked if he would be credit union friendly if he were elected, he replied, "Of course, but I don't want to say that means I'm not friendly to other interests and in particular banking interests. Over time, my sense is–and I really believe this–that the strength of our financial markets is in its variegation." He likened it to a tree with many branches bending in the wind, if one has some trouble, the others provide strength to balance it out so it does not collapse.

"So one should not be favored to the exclusion of the other," he concluded. "Each one has their own separate incentives and features. However, I do think there's way too much overlapping regulation. I believe, and one of the things I would be interested in looking at and learning more about would be whether or not in the federal regulatory scheme of things that we might get down to some basic principles of solvency and safety and soundness and then see if we couldn't streamline the applicable regulatory process, particularly the inspection process, the auditing process, the oversight process." Financial institutions should not have to be prepared for an audit at any time, Daub advocated.

He clarified that he is not interested in consolidating regulators because, he said, variety is strength.

Daub made reference to a quote in the Jefferson Memorial that basically says it would be terrible if the coat that fit us as a boy had to fit us as a man; Jefferson wanted to allow for America to mature. "[We're] capable of changing and adapting and I certainly think the credit union movement has done that. I certainly think our national banking system has done that. I don't think they're mutually exclusive. They're certainly competitive and I think that's healthy as well."

Daub is currently engaged in a "93 county, 93 city, 93 day listening and learning tour." At the time of the interview, he had completed 55 and made contact with about 2,100 Nebraskans. "It's a fascinating experience. It's interesting. I'm not a candidate at this time. I, in fact, may not be a candidate but my dad always said that you can build a good house if you have a good set of plans," Daub said.

Supporting CURIA?

During his statewide travels, he said he has heard from both credit union and bank constituents about the Credit Union Regulatory Improvements Act (H.R. 1537). He said he has not formed an opinion yet because he does not know enough about it and it is too early in his effort at this point. He did acknowledge that it was an important matter and the he was aware that the credit unions and banks are "certainly a spirited bunch."

Regarding the credit union tax-exemption, Daub also said, "I haven't given that any consideration but I am aware that is what is referred to by the banking folks as the level playing field argument, at least that is their description of it. And, I am aware of the usefulness of the exemption and the justification of it for the credit union side as well." He said he has been too long out of the technical understanding of the issue and will "reserve formulation of an opinion until I've done my homework."

If he does run and if he were to win, Daub said he would be particularly interested in serving on the Banking, Finance, and Agriculture Committees.

Daub expects to complete his listening tour by Aug. 20 and then make an announcement either way in September.

Nebraska Credit Union League President/CEO Scott Sullivan and Governmental Affairs Director Brandon Luetkenhaus are keeping tabs on what is going on in the race. Sullivan noted Hagel's opposition to 1151 and particularly credit union member business lending. "We've tried to smooth those relations since then. He hasn't outwardly opposed us as he did at the beginning of his term," he said.

However, Sullivan called Daub a "viable" candidate. "We will be heavily involved in this race, especially if it is an open seat," he said.

NAFCU Senior Vice President of Governmental Affairs Dan Berger commented, "If and when Senator Hagel decides to retire or run for president, Mr. Daub will be a terrific, viable candidate that understands and supports the credit union community."

CUNA Vice President of Communications and Media Outreach Pat Keefe said the group is not making a decision at this early stage of the process.

Nebraska Attorney General Jim Bruning (R) has officially announced his candidacy for the seat. The primary election is scheduled for May 13, 2008.

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