MADISON, Wis. – The Filene Research Institute has released a report on credit union access to alternative sources of capital that is so comprehensive it includes the perspectives from credit unions who argue such ability would undermine what makes CUs unique.
Study author Bob Hoel, who is a Fellow in Residence at the Institute, authored the report that comes down firmly on the side of CUs having access to sources of capital other than retained earnings.
But he also included the view of those credit union leaders who worry about what such ability might do to the unique structure and nature of credit unions. He quoted John Tippets, CEO of the American Airlines FCU as something of a spokesman for the alternative view.
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"Tippets believes that funding capital through retention of earnings is one of several characteristics contributing to credit unions' uniqueness," Hoel wrote, before adding later, "Credit unions are highly democratic organizations, and it is not unusual to see differences of opinion on major issues like alternative capital. Evidence supporting claims that permitting alternative capital would diminish the uniqueness of credit unions is not strong in the eyes of this researcher."
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