The number of credit union executives from across the countrythat turned out on Capitol Hill for the interchange battle was veryimpressive, especially on such short notice and when travel budgetshave been practically bled dry. More than 1,000 made the trek onCUNA's side hailing from 30 states, while NAFCU called theircontacts “substantial.” This turnout followed CUNA's fly-in inDecember, attracting 600 or so credit union executives to D.C. topush for member business lending legislation. Credit unions aredemonstrating their understanding of the power Washington has overthem.

But this time the fight wasn't about potential powers andincome. This trip was about protecting something credit unionsalready have, which has been estimated around $2 billion in debitinterchange income annually for credit unions in aggregate. Plus,an unknown amount of income is on the table through the provisionallowing discriminatory card treatment by merchants.

CUNA claimed its members made more than 400,000 contacts withlawmakers, and many who did not attend the D.C. Hike were poundingthe pavement in their home districts. A spokesperson called it “thebiggest grassroots outreach we've had since the Credit UnionCampaign for Consumer Choice in 1998.”

Conferencing between the House and Senate began as deadlinestruck last week. Manycredit union friendlies were appointed to the conferencecommittee, including Reps. Spencer Bachus (R-Ala.), PaulKanjorski (D-Pa.), and Ed Royce (R-Calif.). And, free-marketadvocates like Rep. Jeb Hensarling (R-Texas) should help advancetheir cause.

The president was pushing for the completed legislation to be athis desk just days after the date of this issue. If credit unions,and others they have been working with, are unsuccessful?a strongpossibility?it cannot be said they did not try. If the conferees domake a change to help credit unions, hopefully it will actuallyhelp since it will have to be thrown together at the last minute.And if the credit union lobby is successful, it will be quite thefeather in its cap that they took on the retailers and won. Staytuned.

No rest for the weary, however. Credit unions will be hoppingfrom the frying pan into the fire as the House Financial ServicesCommittee gears up for a markup of legislation to expand creditunion business lending authorities. Once the financial servicesregulatory overhaul is out of the way, member business lending isexpected to hit the committee's agenda within a couple of weeks.Kanjorski's legislation has been languishing since the fly-in latelast year. However, outgoing CUNA President/CEO Dan Mica offered peppery testimony regardingcredit union business lending during a hearing last month on acommunity bank small business lending initiative backed by $30billion. Additionally a Treasuryofficial has provided what he said the administration will backfor well-capitalized credit unions.

When pressed though, Fed Chairman Ben Bernanke turned out to be a wet blanket whenit comes to expanding credit union business lending. And, theNCUA's inspector general found weaknesses in credit unions' business loan management as well as the agency's regulation of it. NCUA Chairman Debbie Matz has vowed to tighten oversight. Staytuned.

As credit unions turn from survival (interchange) to focusing oncompetition and the future (business lending), so too are others.Michael D. Zinn, who is president of recruiting firm Michael D.Zinn & Associates in New Jersey, warned last week thatcompanies are beginning to walk the tight rope of growth for thefuture's sake versus keeping expenses down as revenues are stilldepressed. “The war for talent is beginning to take shape,” Zinnsaid. “Though serious thought is being given to keeping the 'costto hire' at an absolute minimum, this too will change as the mosttalented people find themselves in demand.?Companies are beginningto realize that they need to once again compete for the best talentinstead of merely watching their cost of doing business.?If they donot get the bench strength they need now, they will loseopportunities in the near future.”

Credit unions would be wise to heed these words. As the economyturns around in the next few quarters or so, will your credit unionbe positioned for the opportunities that lie ahead? Good managersneed to analyze current resources and near- and long-term forecaststo determine their resource needs?both human and otherwise.

The banks won't always be the cretins they're currentlycharacterized as, so credit unions better have taken advantage ofthe banks' PR misfortunes. The same holds true for staffing. Manycredit unions are better positioned than banks to reverseretrenchment strategies. Now is the time to further take advantageof banks' problems and hire the unemployed former loan officers andmarketers cast aside by the banks. In doing this, credit unions canand should be picky, because there is a huge talent pool waitingfor you to dive into, so credit unions have that luxury. That maynot be true in six or nine months. Seize the opportunity to hire todevelop new programs and products to serve your members and attractpotential members. As it pertains to economic forecasting and HRtrends, stay tuned.

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