Florida’s Sanchez: ‘Corporate Welfare’ for Credit Unions Must End

Congress cannot proclaim its support for community banks while allowing tax-subsidized credit unions to continue growing and competing against banks on a tilted playing field, Florida Bankers Association President and CEO Alex Sanchez wrote in a Fox Business op-ed today.

“Congress cannot have it both ways, publicly proclaiming support for community banks while allowing corporate welfare for credit unions to continue,” he wrote. “Credit unions, awash in cash because of their tax-exempt status, are buying banks in cash deals. Since 2012, credit unions have purchased 29 banks.” In Florida, he noted, credit unions have bought seven banks in the past 12 months—four of them in 2019 alone.