MADISON, Wis. -- Amidst banker vs. credit union invective, theWisconsin State Legislature has for the moment turned thumbs downon passing Community Act Investment rules to cover CUs.

An enabling bill targeting CUs above $100 million, which wasdrafted by the Wisconsin Bankers Association and introduced by theAssembly's Pro Temp Speaker Representative Mark Gottlieb (R-PortWashington), never got out of committee as the legislature endedits regular session March 13.

The banking lobby vowed to re-introduce the Gottlieb bill duringa budget session slated later this spring, but the Wisconsin CreditUnion League claimed the measure stands no chance and was just adesperate attempt to draw headlines. The measure had only oneAssembly sponsor "and we couldn't even find bankers who wereconstituents," said a spokeswoman, contending that the WBA hadpersuaded Gottlieb to do trade group bidding.

Meanwhile, the two trade groups traded bitter media blaststhrough a series of press releases focusing on the tax exemptionand on "large nontraditional credit unions" that need to be treatedlike banks, declared the WBA.

In a counter punch, the league called banker tactics "bait andswitch" and an attempt to put CUs out of business and "take themover."

Citing its own study and three others by the GovernmentAccountability Office, the Woodstock Institute of Chicago and theNational Community Reinvestment Coalition, the WBA claimed there isnow proof CUs are failing the underserved.

However, Brett Thompson, president/CEO of the league, chargedthe banker studies are seriously flawed and represent a smokescreen for their own poor practices in serving low-income consumersand minorities.

Thompson stated that the Gottlieb bill is another attempt toeliminate CUs in the financial marketplace, adding, "banks alreadycontrol 91% of the assets" in Wisconsin "but it seems they wantmore, and now they've set their sights on the largest creditunions."

The Gottlieb bill also contains a provision enabling CUs toswitch to mutual savings bank charters.

In its latest press release issued last week, the WBA noted that100 bankers turned out for the first hearing on the Gottlieb billvoicing claims that "large, profit-driven credit unions lag banksin serving lower income, minority consumers."

The WBA acknowledged the uncertain status of the bill. While it"may not move forward this session, it laid a strong foundation forthe next legislative session," forecast the WBA.

The league countered that the Gottlieb bill was totallyunnecessary since "credit unions have never been subject to thefederal CRA because there has been no evidence they werediscriminating or failing to serve their member-owners."

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