Credit unions aren't included in a proposed program to lend community banks money so they can lend money to small businesses and Independent Community Bankers of America President/CEO Camden Fine wants to be sure they are kept out.
In a letter sent to Treasury Secretary Timothy Geithner today, Fine wrote that "credit unions shouldn't be able to participate in the program since they are subject to restrictions on commercial lending and are tax exempt."
Fine urged Geithner to structure the program so the maximum number of community banks can participate. He suggested that CAMEL 3 banks be automatically eligible while those with a CAMEL 4 rating should be permitted to participate with approval.
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Also, he wants banks subject to supervisory orders not to be disqualified and when a bank's financial position is being evaluated it should be considered based on what its status will be after the capital is injected.
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