ATLANTIC CITY, N.J. — Key lawmakers are interested in injecting credit union capital issues into the general capital discussions in Congress, according to CUNA President/CEO Bill Cheney.
Cheney said Oct. 4 during the New Jersey Credit Union League's Annual Convention that members of Congress in key positions for credit unions want to include credit unions in upcoming capital discussions on the Hill.
Alternative capital is priority No. 2 for CUNA's lobbying efforts-second to member business lending, CUNA's CEO said. He noted that Basel 3 will bring bank capital requirements up to 7%, where the credit unions already are.
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If there is to be alternative capital for credit unions, Cheney emphasized that it must not hinder the one member, one vote principle; any claims would be junior to federally insured claims; the investments would be suitable to everyday members; and that it would be optional, among other standards.
Cheney also said CUNA is working with the NCUA on capital loans.
On the topic of business lending, Cheney pointed out the irony of banks claiming that credit unions aren't good business lenders while business loan charge-offs at banks are four times that of credit unions. He added, "It's unconscionable for Congress to give the banks $30 billion-leftover TARP money…and we're not in that bill."
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