Credit unions lost a close ally when Congressman Paul Kanjorski conceded the race to Hazelton Mayor Lou Barletta. The congressman earned his stripes with credit unions during the fight to push through H.R. 1151 in the 105th Congress, which many have proclaimed saved the industry, although some at the time questioned whether it did much good at all.

In fact, that legislation is how credit unions got nailed with prompt corrective action, which set the restrictive nonrisk-based requirements for credit union capital they are lobbying to overturn. CUNA CEO Bill Cheney has said that capital reform will be a top priority for the trade group in the 112th Congress. Additionally, H.R. 1151 hit credit unions with the cap on member business lending, which they are currently working to overturn or at least increase. Credit unions are expending considerable political capital on reversing these two items, not to mention time and money.

These were unfortunate compromises made along the way, but in the end the legislation to save the multiple common-bond charter was passed over a legal ruling won by the American Bankers Association. The legislative process isn't pretty, especially when the affected credit unions were desperate. Kanjo, has he has been nicknamed, was an integral part of the congressional team that made that legislation a reality. He is to be commended for that.