Stating he wants to set the record straight, NAFCU President/CEOB. Dan Berger told Rep. Steve King (R-Iowa) that some banks – andnot credit unions – may deserve additional scrutiny from theGovernment Accountability Office.

“Perhaps the banking industry is the one that needs the realstudy, given that nearly one-third of banks are Subchapter S corporations that pay no corporateincome tax,” Berger wrote in a rebuttal to King's call for a GAOreport that would help determine whether credit unions stilldeserve their current tax exemption.

In a letter sent Monday to House Ways and Means Chairman KevinBrady (R-Texas), King stated the credit union tax exemption will cost some $10billion over the next five years.

He requested that Brady ask the GAO to update a 2006 study oncredit unions. House Ways and Means Committee staff said they arestill checking to see if Brady had prepared a response forKing.

In his letter to King, Berger said shortly after the GAO reportwas released, “reckless actions by banks caused the economy tocollapse and created the need for a TARP bailout of hundreds ofbillions of dollars.”

He added the banking industry has been hit with more than $100billion in fines, settlements and buy-backs as a result of thecrisis.

In addition, he said there are 1.1 million credit union membersin King's home state of Iowa and that consumers in the HawkeyeState benefitted by some $1.4 billion between 2005 and 2013 as aresult of the institutions.

He also disputed King's notion that business lending caps havebeen adjusted, saying the NCUA had simply removed the red tape thatmany businesses faced when seeking such assistance.

Berger added a 2011 study commissioned by the Small BusinessAdministration found bank business lending had largely beenunaffected by changes in credit union business lending.

Finally, Berger contradicted King's assertion that the NCUA hasvastly expanded the number of people eligible for credit unionmembership, noting the agency has not adjusted field of membershiprules.

“It is true that credit union membership has grown, but mainlyfrom consumers fleeing the predatory practices of banks and turningto credit unions,” Berger told King.

He added the NCUA has not operated without congressionalsupervision, noting the House Financial Services Committee held anoversight hearing on the agency earlier before Congress.